Description of Kuwaiti Financial Markets and its role in the Economy

The capital market of Kuwait is between the oldest in region of GCC. The Kuwait Stock Exchange functions like a stock exchange that offers protection on investment for depositors and shareholder. The company based in Kuwait City, was establish in 1962. The market of Kuwait Stock Exchange is preparation to sell its stock exchange stake. The Capital Markets Authority is carrying out research for primary Public Offering by end of April, Mishaal Al-Usaimi (Vice Chairman) told Bloomberg TV. “From that we will have a very clear timeline taking us to the IPO, but we are hopeful that we will complete that by the end of the year.” The sale of share in exchange will comprise of an offering to the degree that 50% to public and up to 24% to entities state, last month said Capital Markets Authority

                                                   https://www.gulfbase.com/special-report/4/12-06-201

It also employ a association led by Tri International Consulting Group to recommend on promotion in so far as 44% of Bourse Kuwait to operator of overseas exchange. there are about 2 or 3 companies who may put up for sale shares via IPOs that might elevate about KWD 80 million in 2018, the Khaled Abdulrazzaq AlKhaled (Chief Executive Officer) exchange’s said at a Dubai conference. On April 1, 2018, the bourse strategy to establish the next phase of modification, which comprises unraveling equities into 3 grouping, depends on capitalization of market and volume of trading. The Kuwait Stock Exchange has chosen from board of directors a chairman, in December subsequent to the meeting of its preceding oil minister chairman.

The Kuwait Stock Exchange will offers an extensive variety of diverse and limited stocks quality, connected with an growing market instruments number, that is also making it attractive for both foreign and domestic shareholder. The Kuwait Stock Exchange encourage the Kuwaiti capital market development and regarding Kuwait Stock Exchange is devoted to heartening the wellbeing of the business, members, investors and business, its workers, government and nation. The purpose of Kuwait Stock Exchange is to be a first-rate stock exchange in the world.

Characteristics of the Kuwaiti Stock Exchange

In the Kuwait Stock Exchange to defend investors and all of the listed companies from future distress, the government set up the CML in February 2010, a complete position of authoritarian improves and development intended to bring mix-up and market operations at Kuwait Stock Exchange in line with global practices. Depending on the analogous designed OF legislation by next-door Gulf countries and also Exchange Commission and Securities of US, the law well-known a new regulator in market, specifically the Capital Markets Authority, officially separating the operational and regulatory Kuwait’s capital markets features for first time in the history of country.

The Capital Markets Authority has taken an activist, practical stance towards adaptable Kuwait Stock Exchange activity. Other than that for keeping in mind the processes at some of the listed companies, ICs and between shareholder, the authority has bring in a crowd of innovative rules and regulations in order to encourage good company supremacy, increase transparency and make possible improved capabilities of the risk-management all through operations of the bourse. In the long-standing, the Capital Markets Authority plans to privatize the Kuwait Stock Exchange, which might involve up to 44% of companies to a global company with knowledge of exchanges operations. In the intervening time, quite a few current changes must help increase exchange activity.

Market Indices of Description of Kuwaiti Financial Markets and its role in the Economy
Market Index Sectorial Indices that comprise Investment, Banking, Mutual funds, Insurance, Real Estate, Industrial, Food, Industrial, Services, and Non Kuwaitis (Marketwatch.coM, 2017).

Market Capitalization of Description of Kuwaiti Financial Markets and its role in the Economy

Throughout January 2006, the market capitalization of the Kuwait Stock Exchange was about 130,008.27 (US$), in September 2006 with 158 listed companies, the capitalization of market was altered to 106,825.42 (US$) with about 175 companies listed (Businesstimes.com.sg, 2018).

In mid-2014 Brent crude, the price benchmark international oil, go down from above $115 in one barrel to under $30 per barrel in excess of the next year, previous to in early 2016 leveling out at $45-50 per barrel. This value loss in worldwide oil markets punch economies of the Gulf– and a lot of which, as well as Kuwait, are dependent to a large amount on revenues from hydrocarbons– mainly hard. Since after that, numerous local capital markets in the countries have seen outflows of more capital. In the country of Kuwait, the Kuwait Stock Exchange in 2014 index price cut down by 13% and in 2015 by14%, for example, even as the biased index go down by 3% and 13% in excess of same period. Although just in 1.1% of total value of Kuwait Stock Exchange was in a straight line tied up in securities related to hydrocarbons, the immense volume of economy of Kuwait relies on oil and gas revenues to some level (Arabtimesonline.com;, 2018).   

https://www.gulfbase.com/special-report/4/12-06-2018

The stocks of banking in the country accounted for presently fewer than 50% of the Kuwait Stock Exchange total capitalization of the market at 2015end. The index banking, which follow the listed banks performance; turn down by 9.7% in excess of the 2015, mainly as effect of slowing put down and spending of government? The NBK that is also said to be the largest lender country is the leader by capitalization in the marketplace. The next-largest division as calculated by capitalization of market was landed property, with total of 9.9%, that is follow by financial services with 9.3 % industrials with 9.3%, and telecoms about 8.7%.

Major Companies listed in Kuwait Stock Exchange

·         National Bank of Kuwait

·         CBK Commercial Bank of Kuwait

·         BKME Bank of Kuwait and The Middle East

·         GBK Gulf Bank of Kuwait

·         ABK AL-Ahli Bank of Kuwait

In the year 2015 most division indices turn down, with those industries that are connected directly to hydrocarbons weakening by major percentages. Certainly, in 2015the sector of oil and gas index cut down by 34.4%. The industry’s financial services that have ties to hydrocarbons are turning down by 24.2%. The merely two subdivision directory that did not position a turn down in price throughout the year were indemnity and health care, that is also grew by 4.6% and 3.8%, correspondingly.

References of Description of Kuwaiti Financial Markets and its role in the Economy

Arabtimesonline.com;. (2018, July 21). Boursa Kuwait announces its full membership with FEAS exchanges. Retrieved from http://www.arabtimesonline.com/news/boursa-kuwait-announces-its-full-membership-with-feas-exchanges/

Businesstimes.com.sg. (2018, September 10). Kuwait is now stock investors' new darling in Gulf . Retrieved from https://www.businesstimes.com.sg/government-economy/kuwait-is-now-stock-investors-new-darling-in-gulf

Marketwatch.coM. (2017, October 27). Dow Jones Kuwait Total Stock Market Total Return Index KWD. Retrieved from https://www.marketwatch.com/investing/index/dwkwt/historical?countrycode=xx