Kuwait's logistics operator Agility surged to a five-week high following media reports that the company has formed an alliance to compete in a bid for a $280 million stake sale to privatise state-owned Kuwait Airways.

The stocks jumped 9.3 per cent in early trading, helping lift the index to a five-week high.

The privatisation committee of Kuwait Airways had asked potential investors to submit their interest in buying a stake in the Gulf state's carrier in early August, the Kuwaiti daily Al Qabas had reported.

"Any news on Agility is good news because the company has been ridden with bad news," says a Kuwait-based trader on condition on anonymity. "Looks like they are going to lead a consortium."

Their stock had plummeted to a near-eight year low in August following court charges by the United States government against the firm for defrauding the US government on military contracts.-Reuters