The New Market Segmentation of Boursa Kuwait – What You Need to Know

Kuwait: January 18, 2018

HIGHLIGHTS

• Boursa Kuwait issued a new Rulebook which will come into effect with the launch of the phase two of the market development project expected in early 2018. The Rulebook is meant to be an all-inclusive document containing a complete regulatory and organizational framework that would govern all operational aspects of the stock exchange.
• The rulebook has specified a new segmentation of the market into three new markets: the Premier Market, The Main Market, and the Auction Markets. A new set of Indices was also announced. The new Indices will be market cap weighted and will replace all existing indices which will be discontinued.
• This represents another step in the broader framework of a market development plan aimed at overhauling and reforming the local stock exchange and elevating it to international standards
• The new segmentation will potentially have far reaching implications for listed companies especially in terms of shareholding structure. It will effectively move part of the burden of creating liquidity to the companies themselves
• The listing and status maintenance requirements of the Premier market will make it a blue-chip, mid to large cap segment of the overall market that comprises market leaders in terms of size, liquidity, transparency, and corporate governance.

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