The Kuwait Stock Exchange is poised for a major review of the weightings of its leading listed entities—particularly banks and key operating companies—this Thursday, as part of the periodic update to the Morgan Stanley Capital International (MSCI) Index.
Following a reassessment by investment institutions tracking the MSCI index, the results are expected to be reflected in affected stocks with the injection of approximately $50 million in foreign liquidity. While most local equities are expected to retain their core weightings, select stocks could see upward revisions, reports Al-Rai daily.
This development comes amid a broader transformation in Kuwait’s capital market infrastructure. Thanks to ongoing collaboration between Boursa Kuwait, the Capital Markets Authority, the Kuwait Clearing Company, and brokerage firms, the technical environment has significantly matured.
The upcoming launch of the Central Counterparty (CCP) system is expected to further enhance investor confidence by improving settlement security for global institutions.
Additional reforms include finalizing the appointment of the National Bank of Kuwait as the settlement bank—already integrated with over six brokerage firms—and advancements in licensing brokerage firms to manage client assets under strict technical guidelines. Infrastructure to facilitate sukuk and bond trading is also being prepared.
These changes are part of Kuwait’s broader strategy to attract more foreign investment and reinforce its position as a competitive financial hub in the region.
The stock market closed yesterday with a modest rise, with the general index up 1.05 points and the premier market index gaining 4.88 points, supported by a trading volume of KD 84 million.
