Kuwait to adopt new benchmark
Bourse will group firms in segments according to criteria including market capitalisation
Kuwait’s stock exchange will introduce a new equities benchmark next year after completing a reorganisation of its listed companies into new market categories, the bourse’s chief executive officer said.
Boursa Kuwait, as the exchange is known, will group companies in segments according to criteria including market capitalisation and average daily traded volume as part of a program to boost liquidity and draw new investors and issuers, CEO Khalid Al Khalid said in an interview in Kuwait City on Sunday.
“We are stakeholders engaging on a daily with basis The Middle East Investor Relations Association (Meira) signed a Memorandum of Understanding with Boursa Kuwait in efforts to raise awareness of the Investor Relations function across the region.
Alex MacDonald-Vitale, Meira Chairman, joined Khalid Al Khalid, Boursa Kuwait vice-chairman and CEO, on the panel table at Boursa Kuwait headquarters on March 23 to mark the start of this agreement. Through this partnership, Boursa Kuwait will be playing a leading role in the support of the ‘Meira Kuwait Chapter’ and linking the organisation to relevant stakeholders, while rolling out its various awareness and training programmes with regards to investor relations. to know what are their needs,” said Al Khalid, who is also the stock exchange’s vice-chairman. “Once all what we have planned is implemented, we will be a tough market to compete with.”
Kuwait is joining Gulf neighbours including Saudi Arabia and the UAE in upgrading and expanding equities trading to attract investors. The allocation of stocks to new categories is expected in the first quarter of next year, advancing a programme to revamp post-trade and settlement systems that’s already underway, Al Khalid said, citing estimates on timing from the Capital Markets Authority. Once the segmentation is in place, derivative products and exchange traded funds will be offered to local and international investors.