KUWAIT CITY (AFP) - The Kuwait Stock Exchange, which has made solid gains since the US-led war on Iraq, rallied above the 6,000-point psychological barrier to a new all-time high on the back of an optimistic economic outlook.
The index of the Arab world`s second largest bourse finished at 6,017.70 points, up 43 points or 0.7 percent on last week`s close.
Sunday was the first day of trading in the five-day week since Saturday was a public holiday.
On an upward trend since 2000, the market has risen 90.8 percent since the April 2003 fall of Saddam Hussein`s regime in neighbouring Iraq. It has already gained 25.6 percent on its 2003 close of 4,790.20 points.
"It`s all-round positive indicators that have boosted investor confidence," said analyst Ali al-Nimesh.
"There is abundant liquidity with the government and private sector... Oil prices are still very high... And listed firms are expected to have better-than-expected profits in the third quarter," he told AFP.
"The government has been offering new construction and housing projects which had a positive impact on construction and real estate firms... besides Kuwaiti firms winning lucrative multi-billion-dollar contracts in Iraq."
The index has been driven up by positive economic indicators that show the oil-rich emirate is heading for a huge surplus in the current 2004/2005 fiscal year, which would be its sixth consecutive windfall.
Kuwait`s Finance Minister Mahmud al-Nuri told an economic seminar Sunday that having shaken off security concerns following Saddam`s overthrow, his country will now focus more on economic development.
Saddam`s army invaded Kuwait in August 1990 and occupied it for seven months before being evicted by a US-led multinational coalition in the 1991 Gulf War.
"Now the government is more concerned with developing the infrastructure of public services and will be offering mega projects to the private sector due to the financial surplus generated by oil revenues," Nuri said.
New mega projects in the pipeline include developing Failaka island, off the Kuwaiti coast, setting up a modern harbour in north Kuwait, constructing a 25-kilometre (16-mile) long causeway and establishing a fourth refinery, the minister said.
"Such huge projects have greatly boosted investor confidence in the local economy and made a definite positive impact on the bourse," Nimesh said.
The value of trading on Sunday was 77.2 million dinars (262 million dollars) compared to an average daily trading of 227.8 million dollars during the first six months of this year.
Last year, the average was 223 million dollars, up on 86.4 million dollars in 2002 and 48 million the previous year.
With a capitalisation of more than 65 billion dollars, the KSE is the second-largest stock market in the Arab world after Saudi Arabia. It has 113 Kuwaiti and non-Kuwaiti listed firms.