KUWAIT CITY, Dec 18: Foreign institutions tracking the MSCI, FTSE, and Standard & Poor’s emerging market indices have closed their accounts for this year following periodic and annual reviews of their investment positions on the Boursa Kuwait, reports Al-Rai daily. The recent reviews by inactive foreign institutions showed varied impacts, with some reducing weights and making limited increases in positions in major local companies.

The impact of the FTSE review was relatively slight, with approximately $22 million in total funds flowing in and out of the stock exchange. On the other hand, active international institutions were more prominent, not being restricted to specific weights or the number of companies. There are expectations that these active institutions will continue to strengthen their positions through selective purchases during daily trading. Investment sources highlight that local stocks listed on emerging market indices are under constant scrutiny by global entities, funds, and investment portfolios tracking those indices. Active institutions have a significant influence on trading, as their operations are part of daily trading. They are expected to continue with thoughtful purchases before the annual closings. Recent closings revealed that ten leading entities listed on the stock exchange acquired 27.75 billion dinars, constituting around 69 percent of the total market value of companies.

Key sectors include banking and telecommunications, with companies such as KFH, NBK, Boubyan Bank, Zain, Agility, Al-Mabanee, Al-Khaleej, Al-Tijari, Burgan, and Ooredoo. While only four sectors closed with an increase in performance since the beginning of the year --consumer goods, health care, consumer services, and insurance -- banks, industry, financial services, and others still lead the sectors with losses. Investment portfolios and funds are showing significant interest in reducing losses and achieving balanced closings by the end of the year. Some may fully compensate for their losses, and there are expectations that certain investment portfolios will adjust their plans and outlook toward annual closings in the remaining eight trading sessions of the year.

Major investment institutions are working to achieve balance in their components, focusing on companies that provide returns to shareholders. The banking and service sectors have been particularly targeted for acquisition, as they offer cash distributions and free grants to shareholders annually. Stocks listed on global emerging markets indices boast the highest liquidity in circulation. Medium and large-cap stocks stand out as targets for individuals and local medium and small portfolios, resulting in increased transaction intensity