MSCI confirms Kuwait EM upgrade effective 30th November & $10 billion+ of new investment could flow into Kuwaiti equities as a result
- MSCI has confirmed that Kuwait
will be upgraded from frontier market to emerging market status effective 30th
- Boursa Kuwait predicts potential
passive asset flows of $2.9 billion
- KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) was the first Kuwait ETF available globally when listed in
- 15 of the 17 stocks in the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) to be included in the MSCI upgrade
- KUW8 is an effective way to
invest in Kuwaiti equities rather than buy individual companies in Dinars
KMEFICFTSE Kuwait Equity UCITS ETF (KUW8) estimates that the MSCI’s reclassification
of Kuwait indices from frontier market status to emerging market on 30th
November could see around $10 billion of asset flows into Kuwaiti stocks. Boursa Kuwait have recently predicted $2.9
billion from passive investments
and industry research has estimated that around $8 billion of this new
investment could come from active strategies.
total, 7 large cap and 14 small cap Kuwaiti stocks will be included in the MSCI’s
new Emerging Market Standard Index. 15 of KUW8’s 17 stocks are included in this
upgrade and which provides 98.4% correlation to the MSCI Kuwait 20/35 Index and
96.8% to the
MSCI All Kuwait Select Size Liquidity Capped index.
Al-Busairi, the Director of KMEFIC FTSE Kuwait ETF, commented:
“The MSCI inclusion is expected to drive up the Kuwaiti stock market leading
up to the event at the end of this month through buy side pressure.
could see around $3 Billion of passive flows into companies listed on Borsa
Kuwait and this expectation is likely to attract active investors looking to profit
from this event.”
all the stocks in KUW8 are included in the MSCI’s upgrade, so we expect them to
see significant in-flows, which should have a
positive impact on KUW8 ETF’s performance.”
you trade ETFs your capital is at risk.
McNeil, Co-Ceo of HANetf, commented: “KUW8 was the first ETF globally
to offer exposure to Kuwaiti equities. It was designed specifically with this
upgrade in mind. International investors often find it difficult to trade
emerging markets locally due to complex custody arrangements, currency issues, and
different trading times and days. Rather than trade 15 individual companies in Kuwaiti
Dinars, investors can invest in one ETF, in USD, GBP or EUR. There is no need for
currency conversion and local custody. KUW8 is also available in European
trading hours, which overlaps and extends past those in Kuwait. KUW8 is also
available to trade on Fridays when the local market is closed. All these
benefits are significant to international investors.”
you trade ETFs your capital is at risk and you may not get back the amount that
you originally invested.
KMEFICFTSE Kuwait Equity UCITS ETF (ticker: KUW8) is a UCITS compliant Exchange
Traded Fund domiciled in Ireland. It
tracks the FTSE Kuwait All Cap 15% Capped Index, an index of large, mid and
small cap securities trading on the premier or main market of Kuwait Stock
Exchange. The Kuwait ETF seeks to
provide targeted exposure to an emerging market with significant growth
potential. KUW8 has delivered
11.61% over the past three months (to 31/10/20) and -3.22% over the past 12
Past performance is no guarantee of future performance.
more information on the ETF, visit the KMEFIC
FTSE Kuwait Equity ETF (KUW8) fund page.