Kuwait yesterday became the first Gulf state to announce direct intervention to support its stock market, following a sharp fall in shares during the past month.

The decision, announced by Badr al-Humaidhi, the finance minister, coincided with protests by angry shareholders demanding government action andthe biggest daily fall - 2.35 per cent - in the market's main index since October 2003. The Kuwait stockmarket has declined about 12 per cent during the past month, in tandem with steep recent corrections in Qatar, the UAE and Saudi Arabia.