A Whole Day’s Trades Canceled in Kuwait Over Dividend Chaos
- Stock market regulator nullifies all of Wednesday’s dealings
- Announcement of no 2020 bank payouts spurs sharp share slumps
Photographer: Phil Weymouth/Bloomberg
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The timing wasn’t ideal: while Kuwait’s central bank governor was in a forum Wednesday with lawmakers and executives discussing plans to boost the economy, shares in the Gulf state’s lenders were tumbling as investors reacted to some unexpected news.
The Kuwait Banking Association announced during the bourse’s trading session that its members would pay no cash dividends for 2020. National Bank of Kuwait SAK fell the most in seven weeks, joining declines across the sector. Turnover jumped to the highest since March. Traders were still assessing a dramatic day when Al-Jarida newspaper tweeted that banks were seeking an urgent meeting with their association, suggesting a breakdown in communication.