KUWAIT, March 26: The share index of the Arab world’s No. 2 bourse surged on Saturday to a fresh record high that left it closing above 7,700 for the first time ever, partly on favourable economic news and announcements of fresh deals. The Kuwait Stock Exchange index of 130 companies closed 110 points higher, or 1.45 per cent, at 7,706.30. The recent surge is pegged to factors such as solid economic fundamentals on a renewed surge in high oil prices, investor bets on strong first quarter profits and expectations that more Iraq-related or local deals will be won by Kuwaiti firms. A new report published by local newspapers on Saturday painted a robust picture for the economy of tiny Kuwait, which controls nearly a tenth of global petroleum reserves. The Gulf Studies Center said in the report that Kuwait achieved the highest economic growth rate among its Gulf Arab peers in 2004 at a record 10.1 per cent.

Kuwait’s gross domestic product (GDP) was seen rising to 47.9 billion dinars ($163.8 billion) in 2005 from 45.9 billion dinars last year, the report said, noting the country will also be able to cut inflation to 1.6 per cent this year from 1.7 per cent in the previous year.

Among active issues, the Kuwait Company for Process Plant Construction & Contracting saw its shares surge 40 fils, or 8 Per cent, at 540 fils, coming in at the No. 2 spot on the percentage gainers’ list.

The company on Saturday announced that it had signed a deal worth 3 million dinars ($10.3 million) with the Public Works Ministry for road and park maintenance in Hawalli region.

Despite correcting a little lower in the past few sessions, the market index opened the current trading week on an upbeat note, with breadth positive at 55 gainers versus 18 decliners.

Volume surged to 317.6 million shares from 242.8 million on Wednesday at the end of the last trading week. Value hit 138.9 million dinars ($475m) on Saturday.

Among other active issues, shares in Boubyan Petrochemical Co rose 50 fils, or 5.38 per cent, at 980 fils.

Kuwait Real Estate rose 3.92 per cent at 265 fils. The bourse said shortly before the close that the firm logged a profit of 850,822 dinars ($2.9 million) from a property sale.

The latest gains pushed the market index up more than 20 Per cent since the start of 2005 following a surge of more than 100pc and 34 per cent in 2003 and 2004, respectively. —Reuters