The Kuwait SE suffers from major problems. Yet, it is encouraging to see signs that these issues are being addressed. We have repeatedly talked about how the Kuwait SE’s main index is misleading and that the exchange is crowded with paper-companies. Well, there is some good news. The new Head of the exchange, Mr. Al-Saif, seems set to embark on a new era of change. This year, the Kuwait SE will launch a new electronic trading platform in collaboration with NASDAQ. This is an imperative step as we had witnessed several trading outages in the past year. It will also help the exchange better monitor trading patterns for compliance purposes and facilitate trades faster and more accurately.
Going back to the point concerning indices, the Kuwait SE is set to launch a new index that consists of 15 blue-chip companies, in collaboration with NASDAQ. It is expected to be tested in the first half and will be fully operational by November. The 15 companies will be “carefully” chosen from across all sectors of the exchange. Moreover, they will be placed on a bi-annual review to aid in updating the constituents of the index. This is something we have been relentlessly calling for here at AlphaDinar: A credible index! On the next post, I will try to guess which companies will be the lucky 15, what are some other implications of these changes, and how you can make money. Stay tuned!
Below are links to previous articles related to the issues with the current price index:
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