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Sunday , February 5 2023

Human Soft & Al-Qurain Petrochemical to be qualified for 1st market after CMA nod

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15 companies included in checklist

KUWAIT CITY, Jan 14: Two companies, Human Soft and Al-Qurain Petrochemical Industries, will be qualified for the first market after meeting the promotion requirements set by the concerned authorities after being approved by the Capital Markets Authority, reports Al-Rai daily.

According to sources, the stakeholders will update the control lists of companies that are expected to be nominated for the first market, or which may face a reduction in their classification in case they violate the terms of liquidity and trading rates on shares and market value.

According to the daily 15 companies are included in the checklist, it was found that ‘Human Soft’ and ‘Qurain’ are almost ready to upgrade between the entities under control, with a market value of the first market of 397 million dinars, while the second value is 406 million dinars.

The shares closed at the end of trading last Thursday. Human Soft has achieved a turnover rate of 27 per cent over the past year, which is a good rate for easy acquisition and exit, while maintaining a balanced rate since the beginning of the current year that is over the past 7 sessions, 1.8 per cent.

The total value of the first market is expected to rise by KD 803 million to reach KD 20.81 billion instead of 20.08 billion. The market value of the main market is expected to decline to only KD 8.9 billion, distributed among 158 listed companies.

Some companies accounted for a good share of liquidity during the past year, including Al Mazaya Holding, with a turnover of KD 278 million, a turnover of 32.7 percent, and could be among the candidates to move to the first market if the rest of the conditions are met. Under the new arrangement and after the stock market update on the lists, the number of companies in the first market will rise to 19 instead of 17, as there are assurances that the first market door is open to all listed companies provided that the requirements are met.

Thus, the field is ready for the inclusion of dozens of liquid companies, but not limited to 19 companies, especially if the realization of the liquidity rate traded on the company’s shares by 90 thousand dinars per day, the minimum liquidity required of the main market companies 22.5 thousand dinars.