0720 GMT- Kuwait's bourse falls from Tuesday's six-week high
as investors book gains in small-caps, while other Gulf Arab
markets are mixed.
Aayan Leasing falls 5 percent, Munshaat Real
Estate drops 6.3 percent and Gulf Investment House
sheds 2 percent.
Kuwait's index dips 0.5 percent to 5,922 points,
trimming year-to-date gains to 1.9 percent.
The benchmark fell to an eight-year low in early November,
but has since rallied after state-linked bodies bought bluechip
stocks and the government promised more action to bolster the
economy.
Politics plays a big role in shaping market sentiment.
"The coming government will include decision makers and
bold politicians to scale up the combat against corruption,"
Prime Minister Sheikh Jaber al-Mubarak al-Sabah said earlier
this week.
"The coming stage will see a quantum leap in economic
development and the stage set for implementing mega projects,
some of which have already been approved," he said.
On Wednesday, an administrative court will look into the
cases of 13 candidates disqualified from running in Saturday's
parliamentary election, local media reported.
"As the elections approach, anticipation as well as tensions
have grown on the Kuwaiti streets, with many people still
leading the charge on the appeal to boycotting (the vote) on one
hand," says Nouf Aloqab, a trader at Global Investment House.
"While an equally great number still insist on the
importance of voting, referring to the upcoming elections as a
celebration of democracy."
Elsewhere, Dubai's benchmark dips 0.05 percent to
1,590 points, while Abu Dhabi's index edges up 0.06
percent to 2,645 points.
In Qatar, the measure rises 0.2 percent to 8,420
points, recovering from an early-session drop to its lowest
level since Aug. 7.
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0603 GMT - Egypt's bourse will likely remain under pressure
on Wednesday after tens of thousands of protestors rallied
against President Mohamed Mursi, while Saudi Arabia's market is
expected to be stabilise after the crown prince sought to allay
fears about the king's health.
Nationwide protests in Egypt saw one of the biggest
outpourings of protest since Hosni Mubarak's overthrow, accusing
the Islamist leader of seeking to impose a new era of autocracy.
Clashes between Mursi's opponents and supporters erupted in
a city north of Cairo.
Domestic unrest usually weighs on the stock market. The
index ticked up 0.02 percent on Tuesday , steadying for
a second session since Sunday's plunge that wiped off about a
tenth of the market's value. The market tumbled after Mursi
seized new powers.
"For a fresh position, it might be better to sit aside until
the political situation dissipates," says Akber Naqvi, hedge
fund portfolio manager at Al Masah Capital.
Elsewhere, Saudi Crown Prince Salman said on Tuesday that
King Abdullah was "well and in good health", more than 10 days
after the monarch underwent back surgery. The message is likely
to reassure many states keen on the stability of the world's
biggest oil exporter.
Saudi Arabia's bourse fell for a 12th session in 14 on
Tuesday, slumping to a fresh 10-month low.
"A market like Saudi succumbs to rumours because it's driven
by retail investors - a confirmation from official channels may
be enough to stabilise the current phase of uncertainty," Naqvi
adds.
In other news, the kingdom's first aluminium smelter will
reach full production more slowly than planned due to long
delays to a power plant it needs to run flat out.
Saudi Arabian Mining Company (Maaden) expects to
begin operations at the aluminium smelter it shares with
U.S.-based Alcoa in December and has secured some of the
huge amounts of electricity it will need.
On global markets, Asian shares ended a seven-day winning
streak on Wednesday and commodities eased as investors fretted
that lack of progress in talks on U.S. budget woes risked
putting the world's largest economy into recession.
Brent crude steadied at over $110 per barrel.
(Reporting by Nadia Saleem; Editing by Matt Smith)