Minister of Finance Anas Al-Saleh has disclosed current "unprecedented coordination" among relevant authorities with aim of finding "comprehensive solutions to conditions of the Kuwait Stock Exchange (KSE)." In an interview with CNBC television channel, the minister indicated the coordination intended to "reform the bourse" is genuinely designed to speed up amending law of the Capital Market Authority (CMA), adding that the modifications will submitted to the National Assembly (Parliament) for endorsement, during January.
He also indicated that the planned measures cover "market mechanisms, procedures of control companies and activating role of the market maker." "These amendments are considered legislative," adding that there are also planned "procedural measures," undertaken by the CMA, adding new investment tools and revision of some steps that had been taken in the past. "All these efforts serve the market interests," he stressed. -- Minister Al-Saleh told CNBC that the national portfolio, established in 2009 with aim of balancing the market, "is currently intensifying its action in the bourse according to its objectives," noting that it has been investing in 40 stocks representing up to 75 percent of the total market value.
Asked on reported Public Investment Authority's disengagement from some companies, the minister said the authority has not "determined mechanisms of such disassociation," adding that such a move would "be subject to the market conditions." He added that such a move had been taken in the past, noting that some of these companies turned global.
The PIA does not desire to withdraw from the market but wants to turn from a direct investor into an indirect one, minister Al-Saleh elaborated, "for we believe that there are investment opportunities in the Kuwaiti market." Resolving the market issue is not restricted to amending the capital market law or activating the national portfolio role, "for there is a package of measures that could be adopted, such as the government abidance by implementing all projects envisaged in the new development plan that would submitted to the National Assembly soon." He described the new state development strategy as realistic and feasible, noting that "it will not be affected with the fall of oil prices and funding resources for it will be found, even if deficit existed." Its ceiling will be determined "with aim of slashing current expenditure and lifting the capital spending," he said, indicating the forecast budget deficit would be tackled either with lending from the state general reserves or through commercial loans, and there will be no "tampering with the development plans," adding that several mega ventures will be executed on the BOT basis.
Source: KUNA