Kuwait's KIA could inject $15bn in bourse
Kuwait City, October 9, 2008
The Kuwait Investment Authority (KIA), the Gulf state's sovereign wealth fund, is capable of injecting almost $15 billion in the local market and might withdraw money invested abroad, a newspaper said.
KIA, which manages the country's oil-generated assets, said earlier this week it was ready to pump more into the Arab world's second-largest bourse after having increased exposure to the market. It gave no volumes.
"The Kuwait Investment Authority confirmed its ablility to pour almost $15 billion in the local stock market," Al-Qabas said in an unsourced report.
The paper added that KIA has increased its available deposits in local banks to billions and might withdraw money invested in foreign markets.
KIA could not immediately be reached for comment.
On Wednesday, Kuwaiti banks and investment firms proposed to set up a "huge" fund with private firms and the government to shore up the local bourse.
The bank and investment company associations called in a statement for the establishment of a "huge portfolio" together with companies and government bodies to invest in the bourse.
The statement did not give the value or other details of the proposed fund to support the stock market, whose index has fallen more than 10 percent in the past four sessions.
Banks will have an additional 1 billion dinars ($3.74 billion) to lend under a measure announced earlier on Wednesday by the central bank to increase the allowed loan-to-deposit ratio for banks to 85 percent from 80 percent, the head of the banking association said. -Reuters