Kuwaiti traders protest as Gulf shares plunge
Posted: 26 October 2008 1625 hrs

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KUWAIT CITY - Kuwaiti traders staged another walkout Sunday and staged a protest outside the stock market as shares in the oil-rich Gulf region plunged in panic over a global recession.

The traders, who deserted the stock market on the week's final day Thursday, left the trading chamber after the index dived more than 300 points a few minutes after the opening.

About 30 of the traders marched to the nearby council of ministers building where the Cabinet was reported to be in an emergency session to discuss a bill to guarantee bank deposits.

The oil-rich emirate's central bank had earlier announced that a draft law would be urgently submitted to parliament to guarantee bank deposits after it was found that the second largest lender made losses in derivatives trading.

CBK said that it has decided to appoint a supervisor for the Gulf Bank operations in management of treasury, forex and share deals.

But it affirmed that the bank's position was strong and it is fully capable of providing its normal banking activities.

Chief Executive Officer of National Bank of Kuwait, the largest in the emirate, meanwhile called for the suspension of trading on the stock market.

"If I were the man responsible for the stock market, I would order an immediate suspension of trading because of panic trading," Ibrahim Dabdoub told the CNBC Arabiya satellite channel.

The Kuwait Stock Exchange Index shed 3.2 per cent and was trading at 10,142 points. The slump was led by the banks which dropped 4.4 per cent and
investment firms 3.4 per cent.

The Dubai Financial Market Index was trading down almost six per cent, dropping below the 3,100-point mark. The market leader, property giant Emaar shed 7.5 per cent.

The Abu Dhabi Securities Exchange dived 3.7 per cent with the key real estate sector down 6.3 per cent.

The Doha Securities Market dived a massive 8.5 per cent to below the 7,000-point mark.

The tiny Muscat Securities Market also dropped 6.4 per cent and was also trading below the 7,000-point mark.

The Saudi market, the largest bourse in the region, which shed almost nine per cent on the week's opening day Saturday, starts trading later.

- AFP/ir