Kuwait Stock Delistings Threaten Market Status
World Economy

Kuwait Stock Delistings Threaten Market Status

A rising tide of delistings from Kuwait’s stock market threatens to widen a gap with rival bourses in the region as companies favor more dynamic economies such as Saudi Arabia and Dubai to sell shares.
With a capitalization of about $88 billion, close to Dubai Financial Market at $97 billion, Kuwait has long been one of the Arab world’s major markets, Arabian Business reported.
But that status could eventually be threatened by an exodus of companies. Since the start of 2014, when Kuwait had 211 listed firms, 24 have announced plans to delist.
In the same period, the exchange decided to delist a further five firms because their shares had been suspended for too long or their accumulated losses exceeded 75% of capital. Only two new firms listed: telecommunications operator VIVA Kuwait and Mezzan Holding.
That contrasts with several other Arab markets where listings have been growing, including Saudi Arabia, up by nine to 171 since the beginning of 2014, and Dubai, where combined listings on the DFM and NASDAQ Dubai are up seven to 70.
There are several motives for delisting from Kuwait. One is weak stock prices as its economy underperforms more dynamic economies in the Persian Gulf Arab states. Kuwait’s stock index is down 24% since the start of 2014, against a 12% drop for Saudi Arabia and an 8% rise for Dubai.
Sheikh Talal Ali al-Abdullah al-Jaber al-Sabah, chief executive of Al-Nawadi Holding, which owns health centers and resorts in the region, cited that factor this month when his company said it would delist.
“The main reason for the withdrawal is the low market value of the shares–it no longer reflects the real value of the shares or the nature of the firm’s business,” he told Reuters.

Short URL : https://goo.gl/7hVTYI
  1. https://goo.gl/0thdWM
  • https://goo.gl/5L8bYq
  • https://goo.gl/9ZWgOq
  • https://goo.gl/XEihgK
  • https://goo.gl/f9eg7r

You can also read ...

Westinghouse Electric, the leading US nuclear fuel producer, said it relies on China for zirconium and zirconium powder  for use in nuclear fuel assemblies
A broad cross-section of US businesses has a message for the...
Argentina Lacks Options to Defend Peso
With interest rates sky-high and the economy heading for...
BMW Seeking Broader China Collaboration
The opening-up is an important policy and German carmaker BMW...
Turkey, Qatar in Currency Swap Deal
The central banks of Qatar and Turkey signed a currency swap...
Vehicle loans have rapidly expanded as cars purchased during a tax rebate scheme for first cars  in 2012-13 have begun to be replaced.
Consumer borrowing is accelerating significantly in Thailand...
UK Business Pessimism Rising
Business leaders’ confidence in the British economy has fallen...
Asian Countries Vie to Set Up Crypto Valleys
The race to establish cryptocurrency hubs in Asia is gathering...
International Labor Organization has called for stronger...