Boursa Kuwait Indices

The Boursa Kuwait Main Market 50 (BK Main 50) Index is a new Market Capitalization Weighted Index that will reflect the top 50 liquid companies in the Main Market. The BK Main 50 Index inclusions and exclusions will be based on the calculation of the average daily traded value (ADTV), which is published simultaneously with the results of Boursa Kuwait Market. The Index will utilize a market cap weighted price return methodology similar to the one set forth in Boursa Kuwait Rulebook under (Article 8-10-1 and the base value of it is 5000. Also, the denomination of the Index is Kuwaiti Dinars and it’s constituents will be  reviewed on an annual basis.  The index results of the review will be announced on the second Sunday of January and take effect on the second Sunday of February.

Qualification:

To qualify for the BK Main 50 Index, companies must:

Be a part of the Main Market

Be one of the top 50 companies in terms of ADTV

The Index will be reviewed annually for inclusions and exclusions on the last trading day of December.

Corporate Actions:

Corporate Actions may lead to adjustments in the Index calculation. Certain events that may affect the Index calculation, such as

Mergers and Acquisitions

Trading halts and suspensions

Bonus issues

Cash dividends

Data Format:

The Index is in Kuwaiti Dinars (KWD) and will be rounded to two decimal places. The Index will be calculated using real time data and reviewed for inclusions and exclusions once a year.

Index information:

CODE

VALUE

ISIN

KW0IN0000200

Index Code

BKM50

Short Name

BK Main 50

Long Name

Boursa Kuwait Main Market 50

Arabic Name

مؤشر السوق الرئيسي 50

Base Value

5000

Currency

KWD

The Boursa Kuwait Main Market 50 index constituents for 2020 are:

FULL NAME

ADTV

AAYAN LEASING & INVESTMENT CO.

574,550.28

ALIMTIAZ INVESTMENT GROUP CO.

388,555.93

COMBINED GROUP CONTRACTING CO.

254,270.07

KUWAIT REAL ESTATE COMPANY

239,902.65

GULF CABLE AND ELECTRICAL INDUSTRIES COMPANY

222,646.02

HEAVY ENGINEERING INDUSTRISE AND SHIP BUILDING CO.

213,144.20

AHLI UNITED BANK

186,262.22

ARZAN FINANCIAL GROUP FOR FINANCING AND INVESTMENT

170,467.11

NATIONAL INVESTMENTS COMPANY

151,803.38

FIRST INVESTMENT COMPANY

150,006.03

THE NATIONAL REAL ESTATE COMPANY

142,641.54

ALAFCO AVIATION LEASE AND FINANCE

140,015.01

AL-MADAR FINANCE AND INVESTMENT CO.

137,438.82

MASHAER HOLDING CO.

120,648.32

ARABI HOLDING GROUP CO.

119,714.28

NOOR FINANCIAL INVESTMENT

116,205.22

JAZEERA AIRWAYS CO.

115,167.16

COMMERCIAL BANK OF KUWAIT

105,639.55

AL-MAZAYA HOLDING CO.

104,099.04

GFH FINANCIAL GROUP (B.S.C)

94,055.67

AL-ENMA A REAL ESTATE CO.

91,840.87

GULF PETROLEUM INVESTMENT

90,394.25

AL-AHLI BANK OF KUWAIT

88,032.86

ALSALAM GROUP HOLDING CO.

82,587.17

ABYAAR REAL ESTATE DEVELOPMENT CO.

80,187.07

MENA REAL ESTATE COMPANY

78,919.09

KUWAIT AND MIDDLE EAST FINANCIAL INVESTMENT CO.

76,498.49

KUWAIT INVESTMENT COMPANY

76,023.47

KUWAIT PORTLAND CEMENT COMPANY

68,324.41

THE COMMERCIAL REAL ESTATE CO.

67,375.66

KGL LOGISTICS COMPANY

64,922.25

THE SECURITIES HOUSE CO.

61,280.99

TAAMEER REAL ESTATE INVESTMENT CO.

57,156.07

SALHIA REAL ESTATE COMPANY

50,087.54

MUBARRAD TRANSPORT CO.

49,082.17

JIYAD HOLDING CO. (ZIMA HOLDING CO.)

45,603.86

AL-MADINA FOR FINANCE AND INVESTMENT CO.

44,328.63

INTERNATIONAL FINANCIAL ADVISORS

43,838.92

PRIVATIZATION HOLDING CO.

41,550.71

INVESTORS HOLDING GROUP CO.

41,461.82

KUWAIT TELECOMMUNICATIONS CO.

41,374.32

SOKOUK HOLDING CO.

39,052.22

KUWAIT FINANCIAL CENTRE

38,087.74

AL-AMAN INVESTMENT COMPANY

38,064.50

KUWAIT FINANCE & INVESTMENT CO.

36,731.58

NATIONAL MOBILE TELECOMMUNICATIONS CO.

33,192.68

AL-MANAR FINANCING AND LEACING COMPANY

33,035.22

COMMERCIAL FACILITIES COMPANY

31,692.93

AAN Digital Services (HITS TELECOM HOLDING CO.)

30,803.20

AL-ARABIY REAL ESTATE CO.

28,433.27

Short Selling

1- Support of short sell orders has been added as part of phase 1 of market development. Short sell orders can have Immediate, Session and Day duration.

2- A Zero + tick rule has been set to control price volatility. Zero + Tick rule, depends on LTP movement. If LTP is up, then Zero Tick rule applies. Otherwise, Up Tick rule applies.

3- If LTP is not available, then Reference Price is used. If there is no reference price, then short sell orders will be rejected.

 

Trading at Last (TAL) session

Quantity amendments for TAL orders will be allowed during TAL session, but only if price is amended to the closing price too.

1- Limit orders for TAL session are rejected if their prices are not at the closing price.

2- Short selling is NOT allowed for TAL orders.

3- Priority of orders are on a price-time basis.

4- TAL session prices will be based on the closing auction session. If a closing price is not discovered, the LTP will be used. If LTP is not available, the previous day’s closing/reference price of the day will be used. If the previous day’s closing/reference price of the day is not available, then order will be rejected.

5- The participation of market makers in TAL session will be optional given that they will not be able to offer spreads on the security they represent. Additionally, their presence in this session will not count towards their obligation, as this obligation only covers the continuous regular trading session.

6- Trades executed in TAL session will impact the volume weighted average price of the security.

7- Market statistics will be updated for trades executed in TAL session.

8- All open orders at the end of the previous session will make their way into the trading at last session, unless they are session orders, in which case they will be withdrawn. The price of the imported orders from the previous sessions can be amended to the closing price only.

 

FUNDS Board

Following two new instruments have been added under the new “FUNDS” board

1- REIT

2- FUND

Listed REITs will behave like a security. Characteristics of the REITs Board are:

- Similar settlement cycle to equities (T+3)

- Frequent dividend distributions

- Lower transaction and listing fees to boost trading activity.

The REITS board will not be related to market segmentation. It will be a standalone board to trade

listed REITS and mutual funds.

Both funds will be treated like a security in terms of tick size, price limits, and them

presence on the BUY-IN board.

Stock Lending and Borrowing (SLB)

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RIGHTS ISSUE

Definition of Rights Issue

 

A Rights Issue is a tradable or waivable Security that grants its owner priority to subscribe in an Issuer’s share capital increase pro rata to the number of Securities he owns in the Issuer’s share capital. 

 

General Provisions of Rights Issue

 

  • A Rights Issue is traded on The Exchange - automatically - upon every subscription in a capital increase of a Listed Company directed to all shareholders of the company.
  • The shareholder's options regarding a Rights Issue are numerous, including selling, waiving, or retaining these rights, and then exercising the right to subscribe during the designated period. 
  • The shareholder shall not have the right to subscribe to the Rights Issue if he sells or waives such Rights. Therefore, this right will transfer to the buyer or to the assignee.
  • The buyer of a Rights Issue has the right to sell such rights on The Exchange up to five business days prior to the end of the period designated to exercising the rights. The buyer is also entitled to keep the Rights and subscribe during such period.

 

Procedure for Listing a Rights Issue

 

The listing of the Rights Issue on The Exchange does not require any specific procedures or the issuance of a separate approval from the Authority. The Authority’s approval on the prospectus is an approval on the listing and trading of these Rights on The Exchange.

 

Rights Issue Process 

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Additional Information

Rights Issues listing date As of the date of commencement of subscription for these rights, according to the schedule announced by the company
Suspension of trading in Rights Issue  Five business days prior to the end of the subscription period for these rights
Delisting of Rights Issue Once the listed company announces the capital increase results
Trading Hours Regular Market trading hours
Price Ticks Regular Market price ticks will apply
Price Limits No Price Limits 
Circuit Breakers No Circuit Breakers 
Settlement Cycle T+3
Market Makers Not Allowed
Buy-In Rights Issue defaults will follow Buy-in Board procedures
Reference Price Calculation (first day of trading) Reference Price = Previous Day’s Closing price – Subscription Price (Par value + Issuance premium)
Trading Fees: Subject to the trading fees designated for the market that the company is listed in.
   

 For More information press HERE