Bourse conducts first review of Kuwait-15 index

Kuwait Stock Exchange (KSE) conducted its first review of the Kuwait-15 index introduced in mid 2011, and said there would be regular reviews late May and late November each year. KSE's data and indices work-team issued a statement saying the objective of the regular review is re-assessment of companies' status and merit against set criteria, which could mean exit of certain stocks and debut of others into the Kuwait-15 group. Among top criteria are a company's liquidity and market value, and the team starts by short-listing stocks of the top 50 companies to later decide on just 15 for the index. As an additional measure in case a company drops off the list, the team would also select three companies that would make the list in such event. The statement pointed out the Kuwait-15 index would be launched alongside launch of the market's new trading system soon. It would serve as a better reflector of state of affairs in the market and better guide investors as they make their choices and decisions. The first review resulted in approval of the companies to be listed at present, and the next review is set for May, unless need arise to cross out a company and replace it by another, the top one on the reserve list. The review pushed Boubyan Petrochemical Company out and onto the reserve list, and replaced it by Commercial Bank of Kuwait. Imtiaz company was meanwhile crossed out, and is now off the reserve list. The KSE statement pointed out that the Kuwait-15 companies represent 68.02 percent of overall market value, and 51.43 percent of the overall liquidity.