Boursa Kuwait on Monday hailed an “important” step onto the global investment map with its inclusion inclusion into the MSCI Emerging Markets Indices.
A total of seven listed companies – the National Bank of Kuwait (NBK), Kuwait Finance House (KFH), Zain, Agility, Boubyan Bank, Mabanee and Gulf Bank – were included.
The inclusion brought in huge inflows to the market, as the total traded value during the inclusion was over KD961.6 million, most of which came from foreign inflows.
Boursa Kuwait’s CEO, Mohammad Saud Al-Osaimi, said: “We saw values of over KD961.6 million traded today, which is proof of the Kuwaiti capital market apparatus’s success in absorbing these unprecedented foreign inflows.
“Kuwait’s inclusion in the MSCI Emerging Market Index represents an important milestone in advancing the Kuwaiti capital market and putting Kuwait on the worldwide investment map, as well as a recognition of Boursa Kuwait’s instrumental role in improving market access and efficiency, enhancing transparency and governance, increasing liquidity and strengthening investor confidence.”
In cooperation with the Capital Markets Authority, the Kuwait Clearing Company and Kuwaiti brokerage firms, Boursa Kuwait conducted a series of stress tests to enable Kuwait’s trading systems to absorb the amount of orders and trades that would be conducted during the inclusion.
MSCI announced the reclassification of Kuwait to Emerging Market status in December 2019. The landmark development comes as global recognition of the sweeping market development efforts undertaken by Boursa Kuwait, a statement said.
Boursa Kuwait said over the past three years, the company has rolled out numerous market reforms and new initiatives as part of its comprehensive multi-phase market development plans.
Source:https://www.arabianbusiness.com/markets/455359-boursa-kuwait-sees-31bn-inflows-after-msci-upgrade