The Kuwait Stock Exchange (KSE) Market Index rose for five days straight reaching a five-month high on the back of increased investor sentiment.

The benchmark advanced 1.07 per cent to close at 6,009.5 points on 14 February.

There were 9,006 transactions, worth KD61m ($219m) with 820,255,000 shares changing hands.

“Sentiment started to change after the elections. Investors are coming back to the market,” says Majdi Gharzeddeene, vice-president and head of investment research at Kuwait-based Kipco Asset Management Company (Kamco).

The Islamist opposition won the elections held on 2 February, signalling the end of the two-month old cabinet. The new cabinet was formed on 14 February.

“A new cabinet will address the major economic issues and implement the $100bn development plan,” says Gharzeddeene.

UK-based bank HSBC is advising the Capital Markets Authority (CMA) on privatising the Gulf’s third-largest bourse by market capitalisation.

“It is in process. They are trying to privatise the assets of the stock market. The building is likely to go to the CMA and the money and deposits will go to the new company that will operate the KSE,” says Gharzeddeene.

Under the plans, 50 per cent of the KSE will be floated for Kuwaiti citizens, with the remainder sold in 10 per cent blocks to five private companies.