Marking yet another milestone in its market development journey, Boursa Kuwait today announced the launch of its BK Main 50 Index, which is based on a market cap-weighted price return criterion and will represent the most liquid 50 securities in the Main Market.
The BK Main 50 Index will classify securities according to the index’s methodology, published on the Boursa Kuwait website. Companies will be included or excluded based on the calculation of the average daily traded value (ADTV), which signifies liquidity.
The Index constituents will be reviewed annually based on their average daily traded value (ADTV), which will be published simultaneously with Market Segmentation results. The results of the review will be announced on the second Sunday of January and take effect on the second Sunday of February. The base value and the denomination of the Index will be 5000 points and Kuwaiti Dinars respectively.
Commenting on the announcement, Noura Al-Abdulkareem, Acting Head of Markets, Boursa Kuwait, said: “The launch of the BK Main 50 Index represents a significant step further in Boursa Kuwait’s market segmentation and forms part of our ongoing endeavors aimed at creating a robust capital markets ecosystem in Kuwait that will benefit all market participants. This development, helping enhance the appeal of the equity market to foreign investors and encourage higher participation of local retail investors, will further strengthen the company’s position as a leading stock exchange in the region.”
The launch of the new Index comes ahead of the reclassification of Kuwait in MSCI’s Emerging Markets Index in December 2019. This follows similar reclassification