It has been announced that there is some changes that are going to occur at the Kuwait Stock Exchange. The KSE will change the categories to which stocks belong to. The new categories (or Sectors) include: Oil and Gas, Basic Materials, Consumer Goods, Healthcare, Consumer Services, Telecom, Banks, Insurance, Real Estate, Financial Services, and Technology. The move seems reasonable as the new categories will be more specialized rather than having a generic “Services” category. However, I think it will be difficult to fill some of these categories, such as Technology, Healthcare, and Basic Materials.
Also, a new index will be added, named “Kuwait 15″, which includes 15 of the biggest companies listed on the KSE, based on both market value and volumes. The index is to be adjusted semi-annually. I think the new index would be a better indicator of the overall market as many companies in the current benchmark are not traded frequently, distorting the returns of the benchmark.
Below is the what companies the Kuwait 15 will probably include:
National Industries and Gulf Cable are ranked 16th and 17th in terms of size, but are very close to Agility (15th).
No comments:
Post a Comment