#Kuwait equities attractively priced as country embarks on structural changes | ZAWYA MENA Edition

Kuwait equities attractively priced as country embarks on structural changes | ZAWYA MENA Edition:

The decision by MSCI to postpone the reclassification of Kuwait indices from frontier market status to emerging market, and developments in the country since the coronavirus crisis started, means Kuwaiti equities are attractively priced.

This is the view of the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8), a UCITS compliant Exchange Traded Fund domiciled in Ireland which 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.

Abdullah Al-Busairi, director of KMEFIC FTSE Kuwait ETF, commented: “The postponement of MSCI’s upgrade for Kuwait to emerging market status was a blessing in disguise as it has allowed Kuwaiti firms time to stabilize prior to the inclusion of major new investor inflows.

“This, combined with the fact that Kuwait has seemingly been successful so far in controlling the pandemic and is now slowly opening the economy back up, means Kuwait equity prices are very competitively priced. Even so, buying pressure will slowly ramp up again prior to the emerging market status upgrade in November.”