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CNN Live At Daybreak

What's Investing Like in Kuwaiti Stock Exchange?

Aired January 31, 2003 - 06:51   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: Of course, with Bill in Kuwait City, Martin Savidge, who has done a rather interesting story out of Kuwait. Chances are you follow what happens on Wall Street so you can keep track of your nest egg. But what's investing like in the Kuwaiti stock exchange?
Well, our Martin Savidge is no chicken. He's in Kuwait, as I said, and he found out.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Located in the heart of Kuwait City's financial district, the Kuwait stock market is one of the largest and recently most profitable in the Arab world.

(on camera): So, here's the plan. I have come to the Kuwaiti stock exchange here with my $100, which I will now attempt to invest and then we will see how I do.

(voice-over): Because I'm a novice, I've enlisted the help of one of Kuwait's sharpest stock investors, Amin Behbehani.

(on camera): Amin?

AMIN BEHBEHANI, KUWAIT INVESTOR: Hello.

SAVIDGE: How are you, sir? BEHBEHANI: Nice with you.

SAVIDGE: Wow, so this is the investment place.

(voice-over): First, I have to convert my U.S. dollars into Kuwaiti dinars, often called K.D. We check out the currency board.

(on camera): The American dollar, how do I find out what it's worth in Kuwaiti dinar? BEHBEHANI: The first line.

SAVIDGE (voice-over): One dinar equals about $3.30 U.S., meaning my 100 bucks roughly exchanges to 30 K.D.

(on camera): You don't have any dot.coms?

(voice-over): Next, I fill out the paperwork registering me as a stock trader. Then I select a broker and pay $10 to open an account.

(on camera): So, what do we do?

(voice-over): After that, I sit down with some of Kuwait's shrewdest investors to begin planning my road to riches. I let it slip I was the new investor in town with 30 K.D. just burning a hole in my pocket. They're speechless. Then I dropped my ace. I had a gut feeling on a Kuwaiti company that sells chicken. Their faces said it all. I was onto something.

The conversation stops when my paperwork arrives. I'm not officially a Kuwaiti stock trader.

(on camera): See you, gentlemen.

Let's make some money.

(voice-over): We head for the trading floor.

(on camera): So what we're doing is I've chosen two stocks now and Amin is going to show me how they're doing on the big board and I'll narrow it down to one.

(voice-over): First, we check out stock tip number one, a Kuwaiti finance company. BEHBEHANI: And with 30 K.D. you can buy about 25 shares.

SAVIDGE (on camera): Twenty-five shares? BEHBEHANI: Twenty- five shares.

SAVIDGE: That's not bad. OK. Let's check out the chicken.

(voice-over): Because chicken is selling for less, I can get 100 shares for my money.

(on camera): I think I'm going to go with the chicken, poultry, sir. BEHBEHANI: It's a good buy.

SAVIDGE (voice-over): On a computer screen, we find someone selling chicken stock and boom, in just a matter of minutes, I'm a shareholder in the United Poultry Company. All that's left now is to sit down and watch the profits pour in. I'm not alone. Watching the big board is a favorite pastime of many Kuwaitis. I'm feeling pretty smug.

(on camera): Well, I just bought some chicken.

UNIDENTIFIED MALE: Chicken? Chicken is good.

SAVIDGE (voice-over): Then I'm hit with another dose of reality. The market's headed down.

(on camera): Today's not a good day?

Right.

(voice-over): Just when I was thinking of demanding my money back the cell phone of the man next to me rings. Like any wise investor, I eavesdrop. I couldn't believe my ears. Word was spreading on the trading floor.

(on camera): He's talking chicken. BEHBEHANI: Yes?

SAVIDGE (voice-over): I was headed for Easy Street, a Kuwaiti investor for just one day and rumor had it United Poultry had cinched a deal to sell chicken to the U.S. military. Can you say kaching (ph)?

Martin Savidge, CNN, Kuwait.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired January 31, 2003 - 06:51   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Of course, with Bill in Kuwait City, Martin Savidge, who has done a rather interesting story out of Kuwait. Chances are you follow what happens on Wall Street so you can keep track of your nest egg. But what's investing like in the Kuwaiti stock exchange?
Well, our Martin Savidge is no chicken. He's in Kuwait, as I said, and he found out.

(BEGIN VIDEOTAPE)

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Located in the heart of Kuwait City's financial district, the Kuwait stock market is one of the largest and recently most profitable in the Arab world.

(on camera): So, here's the plan. I have come to the Kuwaiti stock exchange here with my $100, which I will now attempt to invest and then we will see how I do.

(voice-over): Because I'm a novice, I've enlisted the help of one of Kuwait's sharpest stock investors, Amin Behbehani.

(on camera): Amin?

AMIN BEHBEHANI, KUWAIT INVESTOR: Hello.

SAVIDGE: How are you, sir? BEHBEHANI: Nice with you.

SAVIDGE: Wow, so this is the investment place.

(voice-over): First, I have to convert my U.S. dollars into Kuwaiti dinars, often called K.D. We check out the currency board.

(on camera): The American dollar, how do I find out what it's worth in Kuwaiti dinar? BEHBEHANI: The first line.

SAVIDGE (voice-over): One dinar equals about $3.30 U.S., meaning my 100 bucks roughly exchanges to 30 K.D.

(on camera): You don't have any dot.coms?

(voice-over): Next, I fill out the paperwork registering me as a stock trader. Then I select a broker and pay $10 to open an account.

(on camera): So, what do we do?

(voice-over): After that, I sit down with some of Kuwait's shrewdest investors to begin planning my road to riches. I let it slip I was the new investor in town with 30 K.D. just burning a hole in my pocket. They're speechless. Then I dropped my ace. I had a gut feeling on a Kuwaiti company that sells chicken. Their faces said it all. I was onto something.

The conversation stops when my paperwork arrives. I'm not officially a Kuwaiti stock trader.

(on camera): See you, gentlemen.

Let's make some money.

(voice-over): We head for the trading floor.

(on camera): So what we're doing is I've chosen two stocks now and Amin is going to show me how they're doing on the big board and I'll narrow it down to one.

(voice-over): First, we check out stock tip number one, a Kuwaiti finance company. BEHBEHANI: And with 30 K.D. you can buy about 25 shares.

SAVIDGE (on camera): Twenty-five shares? BEHBEHANI: Twenty- five shares.

SAVIDGE: That's not bad. OK. Let's check out the chicken.

(voice-over): Because chicken is selling for less, I can get 100 shares for my money.

(on camera): I think I'm going to go with the chicken, poultry, sir. BEHBEHANI: It's a good buy.

SAVIDGE (voice-over): On a computer screen, we find someone selling chicken stock and boom, in just a matter of minutes, I'm a shareholder in the United Poultry Company. All that's left now is to sit down and watch the profits pour in. I'm not alone. Watching the big board is a favorite pastime of many Kuwaitis. I'm feeling pretty smug.

(on camera): Well, I just bought some chicken.

UNIDENTIFIED MALE: Chicken? Chicken is good.

SAVIDGE (voice-over): Then I'm hit with another dose of reality. The market's headed down.

(on camera): Today's not a good day?

Right.

(voice-over): Just when I was thinking of demanding my money back the cell phone of the man next to me rings. Like any wise investor, I eavesdrop. I couldn't believe my ears. Word was spreading on the trading floor.

(on camera): He's talking chicken. BEHBEHANI: Yes?

SAVIDGE (voice-over): I was headed for Easy Street, a Kuwaiti investor for just one day and rumor had it United Poultry had cinched a deal to sell chicken to the U.S. military. Can you say kaching (ph)?

Martin Savidge, CNN, Kuwait.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com