Saturday, Aug 05, 2006
KUWAIT CITY (Zawya Dow Jones)--The controversial head of Kuwait Stock Exchange, Safaq Al Ruqaibi, is to resign, officials at the bourse said Saturday.
"The report is true. He has not filed in the papers, but he has resigned by phone," an officer in his office said. The resignation will be made official when Al Ruqaibi, currently on vacation, returns to his office.
Kuwaiti newspapers have reported Al Ruqaibi was resigning in protest at what he sees as government interference in the KSE's administration.
The Minister of Commerce and Industry, Falah Al Hajeri, recently issued a decision to reappoint two senior officials at the bourse, reportedly forced to resign, after reviewing complaints about an earlier directive.
Al Hajeri is also the chairman of the KSE committee.
The Kuwaiti index had lost 22% since it peaked February, hit by major regional correction and increased political uncertainties.
It rallied strongly Saturday, gaining 1.4% to close at 9,400.6 points. Traders said the strong comeback was linked to news of the resignation.
"The news has spread throughout the market today, and it's been a bit of a relief. People view this as a first step to reform," said a trading manager at an investment house.
Kuwait is drafting a law to form a capital market authority, ending the policy of the stock exchange effectively policing itself over the past three decades. Analysts said a proper market authority is sorely needed to put the affairs of the stock exchange in order.
-By Sara Ismail, Dow Jones Newswires; +965 934 9692; djnews.dubai@dowjones.com -0- Send instant messages to your online friends http://uk.messenger.yahoo.com ----- Attachment (1 of 1) http://lonnssmail/attachments/2006/Aug/5/12.01.35.225.1.djrukaibi.doc Link ----- By Sara Ismail KUWAIT CITY, August 5: The controversial head of Kuwait Stock Exchange, Safaq Al Ruqaibi, will resign, officials at the bourse confirmed Saturday, as the stock market clocked in its biggest gain in two and a half months. "The report is true. He has not filed in the papers, but he has resigned by phone," an officer in his office said. The resignation will be made official when Al Ruqaibi, currently on vacation, returned. Local newspapers reported Al Ruqaibi is resigning as a form of protest to the government's interference in the KSE's administration. Recently Minister of Commerce and Industry Falah Al Hajeri issued a decision to reappoint two senior officials of the bourse, reportedly forced to resign, after reviewing complaints on an earlier directive. Al Hajeri is also the chairman of the KSE committee. The index had lost 22 per cent since it peaked in February, hit by major regional correction and increased political uncertainties. It rallied strongly Saturday, gaining 1.4 per cent, or 131.9 points to close at 9,400.6. Traders said the strong comeback was strongly related to the news of the resignation. "The news has spread through out the market today, and it's been a bit of a relief. People view this as a first step to reform," said a trading manager at an investment house. "Most of the politics in the stock market are seen to have come from this one person," he said. Kuwait is currently drafting a law to form a capital market authority, after the stock exchange basically policing itself in the past three decades. Analysts said a proper market authority is sorely needed to put the affairs at the stock exchange in order. Original Email Message: http://lonnssmail/attachments/2006/Aug/5/12.01.34.053.email.msg
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08-05-06 0717ET
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