Financial scene awaiting possible upgrade of Boursa Kuwait at MSCI Thurs.

KUWAIT, The financial scene in Kuwait is awaiting the announcement of a possible upgrade for Boursa Kuwait at the Morgan Stanley Capital International (MSCI).

To achieve this upgrade, the Capital Markets Authority (CMA) had to enable foreign investors to get further involved in trading operations at Boursa Kuwait.

The CMA cooperated with Boursa Kuwait and other entities to take serious measures to allow this upgrade.

If the upgrade was announced tomorrow, Boursa Kuwait will be enlisted in the MSCI’s emerging markets index in May of 2020.

The upgrade is intertwined with the ability to attract foreign capital, leading to further liquidity, increasing transparency and better corporate governance.

A report by NBK Capital predicted that in case of a positive announcement from MSCI in December, Kuwait’s weight in the MSCI EM index is likely to be around 0.60 percent, and is expected to result in passive inflows of around USD three billion.

This will be significantly higher than the USD one billion or so of passive inflows from the FTSE EM upgrade event.

The report also estimated the potential upgrade would result in additional active flows in addition to the passive flows.

The updated provisional list for MSCI standard index comprises of seven constituents.

Source: Kuwait News Agency