Kuwait to be added to S&P DJI Global Benchmark Indices with EM classification

Kuwaiti traders follow the stock market at the Kuwait Stock Exchange (KSE) in Kuwait City. (AFP)
Updated 06 December 2018
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Kuwait to be added to S&P DJI Global Benchmark Indices with EM classification

  • Kuwait is one of the standout performers in Gulf markets this year
  • S&P DJI said it recognized the progress Kuwait had made in trade clearing and settlement

DUBAI: Kuwait’s stock market will be added to S&P Dow Jones Indices’ Global Benchmark Indices with an emerging market classification, said Kuwait’s market regulator, citing the index provider.
It is the latest piece of good news for Kuwait, one of the standout performers in Gulf markets this year, and comes ahead of MSCI’s decision next year on whether to reclassify its Kuwait index from the current frontier-market status to its widely used emerging-market benchmark.
In a statement, cited by the Capital Markets Authority, S&P DJI said it recognized the progress Kuwait had made in trade clearing and settlement, including changing to a T+3 settlement cycle, meaning trades are settled within three days of execution, and establishing a delivery versus payment system.
It said the move would be effective before the market opens on Sept. 23, 2019.
Boursa Kuwait, which took control of the Kuwait stock exchange in early 2016, introduced a number of reforms such as relaxing listing rules, delisting companies seen as unfit for public investment and segmenting the market with different disclosure requirements.
Index provider FTSE Russell will include 12 Kuwaiti stocks in two phases — September and December 2018 — which will result in a weighting of just over 0.5 percent in its FTSE Emerging All Cap index.


Apple’s Cook to China: keep opening for sake of global economy

Updated 23 March 2019
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Apple’s Cook to China: keep opening for sake of global economy

  • Cook’s comments come as Apple weathers sinking sales in China
  • Despite official pledges and repeated assurances that China would continue to open its markets

BEIJING: Apple chief executive Tim Cook nudged China on Saturday to open up and said the future would depend on global collaboration, as the United States and China remained locked in a bitter trade dispute.
“We encourage China to continue to open up, we see that as essential, not only for China to reach its full potential, but for the global economy to thrive,” Cook said at a China Development Forum in Beijing.
Despite official pledges and repeated assurances that China would continue to open its markets, some analysts worry that its reform project has slowed or even stalled under President Xi Jinping, who has sought greater control over the economy and a bigger role for state-owned firms at the expense of the private sector.
Cook’s comments come as Apple weathers sinking sales in China because of a contracting smartphone market, increasing pressure from Chinese rivals, and slowing upgrade cycles. The company reported a revenue drop of 26 percent in the greater China region during the quarter ending in December.
Before those results came out, in a January letter to investors, Cook blamed the company’s poor China performance on trade tension between the United States and China, suggesting that pressure on the economy was hurting sales in China.