Trading halted at Kuwait bourse after court order
Nov 13th 2008, 7:59 am
#1
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Location: Melbourne
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Trading halted at Kuwait bourse after court order
KUWAIT CITY (AFP) – Trading at the Kuwait Stock Exchange was halted on Thursday following a court order aimed at halting the market's slide and preventing massive losses among small investors.
The bourse management said it decided to halt trade until Monday after receiving the court order, a move unprecedented in the history of the market which was established in the mid-1970s and is now the second largest in the Arab world.
"The administrative court ordered that trading be suspended immediately at the bourse until November 17 when the court will sit again to look into the issue," a legal source told AFP.
Thursday is the last trading day of the week in the oil-rich Gulf state.
The court issued its ruling after a lawsuit filed by lawyer Adel Abdulhadi on behalf of an investor who claimed he had incurred heavy losses on the Kuwait market over the past few weeks.
When trading was halted, the KSE Index had shed 1.8 percent, dragged down by the banks and investment sectors. The bourse has been trading at 40-month lows.
The court ruling, a copy of which was obtained by AFP, said the order was made to spare investors from heavy losses after the market plunged.
The lawsuit was filed against the prime minister, the commerce minister who is the head of the bourse committee and the director general of the bourse, court papers showed.
The ruling also said that the court found that the bourse management failed to take any measures to boost the flagging market.
Since June 24, when the KSE Index hit an all-time high of 15,654 points, the market has lost more than 43 percent
So what's going to happen when the market opens on Monday?!
The bourse management said it decided to halt trade until Monday after receiving the court order, a move unprecedented in the history of the market which was established in the mid-1970s and is now the second largest in the Arab world.
"The administrative court ordered that trading be suspended immediately at the bourse until November 17 when the court will sit again to look into the issue," a legal source told AFP.
Thursday is the last trading day of the week in the oil-rich Gulf state.
The court issued its ruling after a lawsuit filed by lawyer Adel Abdulhadi on behalf of an investor who claimed he had incurred heavy losses on the Kuwait market over the past few weeks.
When trading was halted, the KSE Index had shed 1.8 percent, dragged down by the banks and investment sectors. The bourse has been trading at 40-month lows.
The court ruling, a copy of which was obtained by AFP, said the order was made to spare investors from heavy losses after the market plunged.
The lawsuit was filed against the prime minister, the commerce minister who is the head of the bourse committee and the director general of the bourse, court papers showed.
The ruling also said that the court found that the bourse management failed to take any measures to boost the flagging market.
Since June 24, when the KSE Index hit an all-time high of 15,654 points, the market has lost more than 43 percent
So what's going to happen when the market opens on Monday?!
Nov 13th 2008, 8:02 am
#2
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Joined: Feb 2007
Location: Kuwait
Posts: 1,202
Re: Trading halted at Kuwait bourse after court order
Wow thanks IndieG - sounds as if its a great time to be in Kuwait - cant wait till next week !!
Nov 13th 2008, 10:22 am
#3
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Joined: Jul 2007
Posts: 13,553
Re: Trading halted at Kuwait bourse after court order
KUWAIT CITY (AFP) – Trading at the Kuwait Stock Exchange was halted on Thursday following a court order aimed at halting the market's slide and preventing massive losses among small investors.
The bourse management said it decided to halt trade until Monday after receiving the court order, a move unprecedented in the history of the market which was established in the mid-1970s and is now the second largest in the Arab world.
"The administrative court ordered that trading be suspended immediately at the bourse until November 17 when the court will sit again to look into the issue," a legal source told AFP.
Thursday is the last trading day of the week in the oil-rich Gulf state.
The court issued its ruling after a lawsuit filed by lawyer Adel Abdulhadi on behalf of an investor who claimed he had incurred heavy losses on the Kuwait market over the past few weeks.
When trading was halted, the KSE Index had shed 1.8 percent, dragged down by the banks and investment sectors. The bourse has been trading at 40-month lows.
The court ruling, a copy of which was obtained by AFP, said the order was made to spare investors from heavy losses after the market plunged.
The lawsuit was filed against the prime minister, the commerce minister who is the head of the bourse committee and the director general of the bourse, court papers showed.
The ruling also said that the court found that the bourse management failed to take any measures to boost the flagging market.
Since June 24, when the KSE Index hit an all-time high of 15,654 points, the market has lost more than 43 percent
So what's going to happen when the market opens on Monday?!
The bourse management said it decided to halt trade until Monday after receiving the court order, a move unprecedented in the history of the market which was established in the mid-1970s and is now the second largest in the Arab world.
"The administrative court ordered that trading be suspended immediately at the bourse until November 17 when the court will sit again to look into the issue," a legal source told AFP.
Thursday is the last trading day of the week in the oil-rich Gulf state.
The court issued its ruling after a lawsuit filed by lawyer Adel Abdulhadi on behalf of an investor who claimed he had incurred heavy losses on the Kuwait market over the past few weeks.
When trading was halted, the KSE Index had shed 1.8 percent, dragged down by the banks and investment sectors. The bourse has been trading at 40-month lows.
The court ruling, a copy of which was obtained by AFP, said the order was made to spare investors from heavy losses after the market plunged.
The lawsuit was filed against the prime minister, the commerce minister who is the head of the bourse committee and the director general of the bourse, court papers showed.
The ruling also said that the court found that the bourse management failed to take any measures to boost the flagging market.
Since June 24, when the KSE Index hit an all-time high of 15,654 points, the market has lost more than 43 percent
So what's going to happen when the market opens on Monday?!
If global stocks have fallen another 10% by the time the Kuwaiti market reopens, will the initial trading be at today's closing prices?? Someone hasn't thought this through...........
Nov 13th 2008, 10:35 am
#4
Truth is the safest lie.
Joined: Jul 2008
Location: @ the beach.
Posts: 7,241
Re: Trading halted at Kuwait bourse after court order
Well based on what we know about markets that have been closed to "calm" them they'll be bending over they desks with their trousers around their ankles when it re-opens. Anyway 42% from peak isn't that bad 
.
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Nov 13th 2008, 10:38 am
#5
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Joined: Jul 2007
Posts: 7,028
Re: Trading halted at Kuwait bourse after court order
Does that mean I can sue Gordon Brown if my investments go down?
Nov 13th 2008, 11:00 am
#6
Truth is the safest lie.
Joined: Jul 2008
Location: @ the beach.
Posts: 7,241
Re: Trading halted at Kuwait bourse after court order
Imagine how you'd feel is you where a UK taxpayer who had invested without wanting to invest in failing banks
. I still don't understand the medaling TBH.
