Mubasher: The Index compiler FTSE Russell’s Secondary Emerging Market Index is announced to include Boursa Kuwait starting from September 2018, according to a recent report issued by KAMCO Research.
This step followed the Capital Markets Authority’s (CMA) attempt to modernise and upgrade the stock market’s infrastructure and rules, especially over the past year.
Meanwhile, the decision on Saudi Arabia’s entry to the EM list was deferred and the assessment process was postponed to March 2018, KAMCO Research said, stressing on the progress made by the Kingdom to its processes.
“For Kuwait, the introduction of T+2/T+3 clearing and settlement cycle was the only outstanding criteria that was met when the CMA introduced T+3 settlement cycle with a Delivery versus Payment (DvP) model in May 2017 after this was highlighted in the March assessment,” KAMCO Research added.
The report clarified that Kuwait has made several changes to its trading system in the past two years, namely the transformation to a company; Boursa Kuwait.
Trading activity on the exchange is surging at almost 3-year high levels, enabling the regulator to attract regional and international investors to invest in Kuwaiti stocks to boost liquidity levels.
“Kuwait also plans to introduce a new equities benchmark next year after completing a reorganisation of its listed companies into new market categories,” KAMCO Research noted.
