.jpg)
FTSE Group (“FTSE”), the award winning global index provider, today announces that the Kuwait Stock Exchange (“KSE”) has selected the widely-used global standard - Industry Classification Benchmark (ICB) – as their chosen classification system. The introduction of the internationally acclaimed ICB opens up the doors to a range of new sector-based investment strategies within exchange-based and wider investment products and services for domestic investors.
Established in 1962, the Kuwait Stock Exchange is one of the first and largest stock exchanges in the Gulf region. Its adoption of the globally recognised ICB marks a significant development as the exchange continues to gain prominence within the world financial markets. The incorporation of ICB within the exchange’s current index solutions and trading platform will further enhance the depth of information available in the market.
The Kuwaiti investment landscape is undergoing a significant period of change with its fund management industry fast becoming one of the biggest in the Gulf region, standing at US $6.6bn and with assets managed under portfolios at US $54bn*. The introduction of ICB to this fast developing market will broaden domestic investment opportunities, whilst its use within a range of practices provides investment managers with a versatile tool for benchmarking, performance measurement and research/analysis.
Regarded as a leading sector classification system in the market and with a global ETF AuM of US $1.4 trillion**, ICB forms a comprehensive structure for categorisation of individual securities across four distinct levels of granularity; Industry, Supersectors, Sectors and Subsectors. Adopted by the international investment community, ICB is utilised by a number of leading stock exchanges, now including Kuwait, which together represent over 65% of the world’s market capitalisation.
Issam Alusaimi, Head of Kuwait Stock Exchange’s Projects Management Office, explained “KSE is in the process of revising many aspects of its activities in order to better serve the national economy and to provide investors and listed companies with better products and services. Critical to these changes are improved technical analysis and better indices. ICB’s globally-recognised sector classification will be fundamental in delivering these improvements.”
Jonathan Cooper, Managing Director Middle East and Africa, FTSE Group said of the announcement “We are pleased that the Kuwait Stock Exchange has adopted ICB as its classification system which we believe will serve as a beneficial and effective tool for the Exchange. The Gulf and wider Middle East are important markets for FTSE and we aim to continue broadening the range of domestic and global investment opportunities for investors in this region, through independent and collaborative efforts.”
*GCC Asset Management Faces Several Challenges, Kuwait Financial Centre S.A.K. 'Markaz’, August 2011.
**Morningstar Data 2011
