Mubasher: Boursa Kuwait’s addition to global index compiler MSCI’s emerging market index is expected to attract foreign inflows of $1.1 billion, according to Beltone’s research department.
The world’s biggest index provider, previously known as, reclassified Kuwaiti stock market to emerging market as part of the May 2020 semi-annual index review.
Kuwait will have an estimated weight of 0.69% in the Emerging Market index, according to MSCI’s equity index committee chairman Sebastian Lieblich.
If Kuwait had been upgraded in the June 2018 semi-annual review, it would have had a weight of 0.5%, and could have possibly increased, with the inclusion of more Kuwaiti companies in the benchmark and small-cap indices, Beltone’s research note said.
KAMCO said earlier that the upgrade of Kuwaiti stocks will attract passive inflows of almost $3.1 billion and more active inflows.
Moreover, Kuwaiti commerce and industry minister Khaled Al Roudan expected investment inflows into Kuwaiti market would amount to as much as $4 billion.
