EFG Hermes, the leading investment bank franchise in Frontier Emerging Markets (FEM), in partnership with Boursa Kuwait, the oldest exchange in the GCC, concluded the “Stars Aligned for the Newest Emerging Market” Virtual Investor Conference as the exchange’s 8th Corporate Day from the 23rd to the 26th of May.
The virtual event brought together executives from 13 Kuwaiti companies with more than 175 international investors from over 95 institutions ($2 trillion in AUMs), to discuss and share insights on some of the most compelling opportunities across Kuwaiti capital markets.
Kuwait’s increasing importance in emerging markets can be traced back to the 2019-2020 EM index upgrades, when Kuwait joined the world’s most closely-tracked emerging market indices. Subsequently, this wider investor exposure led to fund managers’ interest and a growth in AUMs to over $2 trillion, with the "Premier" Market Index delivering an annualized USD total return of 17% over the past five years, comfortably beating the MSCI Emerging Market Index’s annualized return of 6%.
Boursa Kuwait’s Head of Markets Sector Noura Al-Abdulkareem said: “Boursa Kuwait continues to provide opportunities for both companies and investors through its series of Corporate Days, the eighth edition, which was held virtually and organized by EFG Hermes, reflects the exchange’s role in the growth of the Kuwaiti capital market and the national economy.”
“We were delighted to hold this virtual investor conference with our long-term partner Boursa Kuwait, as this progressive exchange continues to prove it is a market to watch. While global growth is expected to slow down in 2022, emerging markets are a favoured destination for investors, driven by economic reform activities and attractive valuations, making Boursa Kuwait an appealing destination. Apart from rising oil prices, investors are drawn to Kuwait’s stock market given the strong consumer recovery after the imposed lockdowns in 2020 and the prospect of IPOs. Government initiatives to push further market reforms that can boost liquidity, such as adding margin trading, have also bolstered the Kuwaiti stock market’s position.” said Mohamed Ebeid, Co-CEO of the Investment Bank, EFG Hermes.
“Volumes continue to rise thanks to strong retail sentiment and rising foreign interest. In 2022, turnover averaged $210 million, up from $179 million in 2021 and $144 million in 2020. The current oil price boom has fueled fresh foreign interest in the market as foreigners net bought $576 million in 1Q22, and $4.2 billion in the past three years” said Ahmed Waly, Head of Brokerage at EFG Hermes. “Boursa Kuwait has developed into a leading regional stock exchange that follows international standards and believes in the private sector’s role in advancing the country’s economic development, and we expect it to garner strong results during the coming period” he added.
Boursa Kuwait’s series of Corporate Days showcase some of the standout listed companies and investment opportunities of the Kuwaiti capital market. Aimed to connect these companies with some of the world’s leading investment firms, asset managers, and financial institutions, the events highlight the firms’ financial health and business strategies, and provide investors with an in-depth understanding of the investment opportunities inherent in them.
Since its inception, Boursa Kuwait has worked diligently to create a credible exchange that fosters efficiency, transparency, and a liquid capital market, through a progressive platform and a comprehensive set of changes that allow it to compete on an international level. Over the past five years, the company has rolled out numerous market reforms and new initiatives as part of its comprehensive multi-phase market development plans.
This marks another virtual conference organized by EFG Hermes since the COVID-19 outbreak, as the firm leverages innovative platforms and continues to connect the investment community with companies to gain insights from experts on trending topics and important prospects in key capital markets.