KUWAIT CITY: Kuwait’s graduation to emerging-markets classification by index compiler FTSE Russell could prompt inflows of as much as $700 million from investors, according to the money manager run by the nation’s largest lender.
The Gulf country won inclusion in FTSE Russell’s list during the weekend, rewarding efforts by local regulators and the stock exchange to modernize trading systems and attract local and foreign investors.
Kuwait’s main equity index has rallied 16 percent this year, the best performance among major Gulf markets, boosted by speculation it would gain promotion.
Financial stocks are best-placed to benefit from the decision, according to Husayn Shahrur, the managing director for Middle East North Africa at NBK Capital, the asset management division of National Bank of Kuwait. The firm had $6.3 billion in assets under management as of Sept. 15.
