Boursa Kuwait’s inclusion in FTSE Russell emerging market list to boost stock exchange’s liquidity

Liquidity will swell to 100 million Kuwait dinars per session once non-Kuwait investments enter the local market, one Kuwaiti economist said. (AFP)
Updated 30 September 2017
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Boursa Kuwait’s inclusion in FTSE Russell emerging market list to boost stock exchange’s liquidity

DUBAI: Economists see a significant growth in liquidity at the Boursa Kuwait after its inclusion in the emerging markets list of the Financial Times Stock Exchange (FTSE) Russell index, state news agency said in a report.
“Classifying Boursa Kuwait as an emerging market will lure traders eager to invest in the Gulf region’s second key stock market, which comprises large banks and corporates with investments and branches in many countries, said Saleh Al-Salmi, the chairman of the International Financial Advisers Company.
FTSE Russell, which covers up to 90 percent of the investable market and benchmarks approximately $15 trillion in market assets, has placed Kuwait the Watch List for possible reclassification to secondary emerging market status since September 2008.
By joining the international market, the entry of global investment funds would impact not only on the Kuwaiti bourse but the regional stock markets as a whole, Al-Salmi said.
Mohammad Al-Tarrah of the Traders Society agreed, and said the Kuwaiti bourse’s inclusion in the FTSE Russell will enhance its attractiveness to offshore funds, and eventually prop stock market liquidity.
Liquidity will swell to 100 million Kuwait dinars per session once non-Kuwait investments enter the local market, Al-Tarra said.
Boursa Kuwait’s market capitalization was at 28.77 billion Kuwaiti dinars as of August, up 13.22 percent from 25.41 billion Kuwaiti dinars at the end of 2016.
The global index provider meanwhile maintained Saudi Arabia in its Watch List. The Kingdom was included in that classification in September 2015 following the introduction of a Qualified Foreign Investor scheme.
“Saudi Arabia is to be congratulated on the pace of the recent market reforms which are widely acknowledged as being positive,” FTSE Russell said.


Libya’s National Oil against paying ‘ransom’ to reopen El Sharara field

Updated 14 December 2018
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Libya’s National Oil against paying ‘ransom’ to reopen El Sharara field

  • Ransom payment would set dangerous precedent
  • NOC declared force majeure on exports on Monday

BENGHAZI: Libya’s state-owned National Oil Corp. (NOC) said it was against paying a ransom to an armed group that has halted crude production at the country’s largest oilfield.
“Any attempt to pay a ransom to the armed militia which shut down El Sharara (oilfield) would set a dangerous precedent that would threaten the recovery of the Libyan economy,” NOC Chairman Mustafa Sanalla said in a statement on the company’s website.
NOC on Monday declared force majeure on exports from the 315,000-barrels-per-day oilfield after it was seized at the weekend by a local militia group.
The nearby El-Feel oilfield, which uses the same power supply as El Sharara, was still producing normally, a spokesman for NOC said, without giving an output figure. The field usually pumps around 70,000 bpd.
Since 2013 Libya has faced a wave of blockages of oilfields and export terminals by armed groups and civilians trying to press the country’s weak state into concessions.
Officials have tended to end such action by paying off protesters who demand to be added to the public payroll.
At El Sharara, in southern Libya, a mix of state-paid guards, civilians and tribesmen have occupied the field, camping there since Saturday, protesters and oil workers said. The protesters work in shifts, with some going home at night.
NOC has evacuated some staff by plane, engineers at the oilfield said. A number of sub-stations away from the main field have been vacated and equipment removed.
The occupiers are divided, with members of the Petroleum Facilities Guard (PFG) indicating they would end the blockade in return for a quick cash payment, oil workers say. The PFG has demanded more men be added to the public payroll.
The tribesmen have asked for long-term development funds, which might take time.
Libya is run by two competing, weak governments. Armed groups, tribesmen and normal Libyans tend to vent their anger about high inflation and a lack of infrastructure on the NOC, which they see as a cash cow booking billions of dollars in oil and gas revenues annually.