Capital Markets
From The Report: Kuwait 2014
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The Kuwait Stock Exchange is the fourth-largest GCC bourse by market capitalisation, with earnings and market capitalisation rising substantially in 2012. The majority of trading activity is among small-cap stocks, but many local players remain optimistic about future performance. The privatisation of the exchange is expected to take place by the end of 2014, and this is widely anticipated to result in a major improvement in overall transparency and lead to greater foreign investment in coming years. This chapter contains an interview with Faisal Sarkhou, CEO, KIPCO Asset Management Company. Share analysis & data is provided by KIPCO Asset Management Company.

Articles from this Chapter

Overview

New developments have had a positive impact on the exchange
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In 2013 Kuwait’s capital markets posted solid growth. By the end of the year trading volumes, earnings and market capitalisation at the Kuwait Stock Exchange (KSE) were up substantially on 2012. The KSE’s steadily improving performance over the past half decade – not to mention its future prospects for continued expansion – can be attributed in large part to the government’s capital markets reform programme, which was codified in the 2010 Capital Markets Law (CML). Since then many aspects…

Interview

OBG talks to Faisal Sarkhou, CEO, KIPCO Asset Management Company
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Interview:Faisal Sarkhou How do you assess the current appetite for (Islamic bonds), and how key are they to reducing capital flight and increasing market liquidity? FAISAL SARKHOU: The market for sukuk in the GCC is expected to surpass previous levels as capital market regulators across the Gulf try to increase the breadth and efficiency of financial markets. Furthermore, as GCC economies continue to push infrastructure projects, governments, corporations and banks will be increasingly encouraged…

Analysis

Growing activity on the bourse reflects new optimism in the market
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In 2013 the Kuwait Stock Exchange (KSE) saw increased trading activity and, according to many local players, rising investor confidence across the board. Over the year market capitalisation at the bourse grew by nearly 7%, largely on the back of the strong-performing consumer services, technology, and oil and gas sectors. The jump in value and trading volume at the KSE in 2013 can be attributed in large part to the exchange’s steadily improving operating and regulatory environment since early 2010. Indeed,…

Analysis

The introduction of derivatives is set to transform the market
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The Kuwait Stock Exchange (KSE) was operating purely as an equities exchange at the end of 2013. The lack of product diversification was seen as a key weakness by both the exchange’s management and the Capital Markets Authority (CMA). The introduction of derivatives to the KSE, expected to take place before the end of 2014, could transform the market. “We plan to introduce a number of international-style derivatives and other products to the exchange, including options, futures, exchange-traded…

Analysis

Logistics
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The Company Established in 1979 under the name Public Warehousing Company, Agility is the largest logistics provider in the Middle East and one of the world’s largest integrated logistics providers serving businesses and governments. It employs more than 20,000 employees and has operations in 100 countries. Agility has been listed on the Kuwait Stock Exchange (KSE) since 1984, with a secondary listing on the Dubai Financial Market (DFM) since 2006. It is currently the 13thlargest company on the KSE in terms of market cap which stands at KD901.3m ($3.17bn). Agility’s operations are divided into the logistics and related services segments,…

Analysis

Gulf Bank: Banking
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The Company Set up in 1960, Gulf Bank KSC (GBK) is a Kuwait-based commercial bank, listed on the Kuwait Stock Exchange since 1984. It is currently the fourth-largest bank on the KSE, with a market capitalisation of KD1.1bn ($3.87bn). GBK was one of the worst-hit banks in the MENA region during the 2008 financial crisis after reporting net losses of KD359.5m ($1.26bn), primarily due to derivative transactions and had to be rescued by the Central Bank of Kuwait by guaranteeing all deposits in local banks in order to restore confidence. In January 2009, the bank raised KD376m ($1.32bn) in an emergency rights offering to existing shareholders, and…