Kuwait bourse fund to start on Wed
Kuwait , December 22, 2008
A planned multi-billion-dollar government fund to buy into Kuwait's bourse will be launched on Wednesday, state news agency Kuna said on Monday citing the country's finance minister.
"Kuwait Investment Authority (KIA) has allocated its share in the long-term investment fund to invest in the Kuwait Stock Exchange to the Kuwait Investment Co," Kuna cited Mustapha al-Shamali, who also heads the KIA board, as saying.
"The firm will actually start running the portfolio on Wednesday," he added, without giving further details.
Last month, Kuwait asked its sovereign wealth fund KIA to set up the fund to shore up the second largest Arab bourse, which has lost more than 30 percent this year in the wake of the global financial crisis.
Shamali said earlier this month KIA will begin investing at least 1.5 billion dinars in the local bourse this month to boost confidence in the market.
Along with the KIA, other government entities, including Kuwait Petroleum Corp and the Public Institution for Social Security will also take part in the fund, Shamali has said.
The KIA, which earlier this year bought into US banks Citigroup and Merrill Lynch, is a major shareholder in many local companies including telecom operator Mobile Telecommunications Co (Zain).
Kuwait's benchmark fell 2.18 percent on Monday.-Reuters