KAMCO: Reforms implemented by CMA upgraded bourse

KUWAIT, Kuwait Investment Company (KAMCO) said on Wednesday that the upgrade of Morgan Stanley Capital International (MSCI) to Kuwait Stock Exchange (KSE) was because of consistent reforms implemented by the Capital Markets Authority (CMA) in less than three years.

The reforms included market segmentation, settlement period, foreign ownership restrictions and increase in traded products, KAMCO reported.

The upgrade will assure investors in Kuwaiti financial markets that will now be included in the Emerging Markets Association countries such as China, India and Russia.

The upgrade could lead to an additional inflow of over USD 2 billion in Kuwaiti markets, it said, noting that after Kuwait exited, Vietnam will be the largest member of the MSCI index to secondary markets.

On Tuesday, MSCI stated the upgrade of KSE in its main index for emerging markets as of May 2020.

This is the third upgrade of KSE after the first upgrade of Britain’s FTSE Russell Index and its counterpart to the Standard and Poor’s Dow Jones for International Indices, which increase expectations of a third upgrade to an emerging market by Super Micro Computer Incorporated (SMCI).

This type of upgrade would draw inactive inflows of up to USD 2.8 billion.

KSE’s promotion to emerging markets began in September 2017 when FTSE Russell stated that KSE was joining its emerging markets index.

Source: Kuwait News Agency