Stock exchange tri-market classification in-line with Kuwait’s ambitions: experts

Move seen ‘crucial’

KUWAIT CITY, Dec 30, (KUNA): Plans to introduce primary, secondary and auction markets to Boursa Kuwait will bring the national stock exchange up to par with emerging markets amid Kuwait’s plans to become a regional financial hub, experts said.

The new classifications, based on liquidity, market value, turnover, nominal value and operational years, will be in the best interests of investors and listed companies alike, analysts suggested in separate remarks to KUNA. The plans would also offer the potential to attract other targeted sectors, such as oil and family-owned companies.

International Financial Advisors (IFA) chairman and CEO Saleh Al- Selmi described the move as “crucial,” saying it would provide catalysts and do much to separate well-performing companies. However, Al-Selmi said it would require alleviating obstacles that face listed firms, particularly those still suffering from the impacts of the international financial downturn of 2008 and other resulting crises.

Therefore, the stock exchange should be on a constant lookout for the problems that face many listed firms, particularly those operating in the financial and banking sectors – both of which are extremely significant to the pace of trading, said Al-Selmi.

As the measures are already in place in many other countries, Arzan Financial Group vice chairman and CEO Jassem Zainal said it would improve liquidity and boost the Kuwaiti market thus attracting further local and foreign investors.

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