Boursa Kuwait adopts FTSE Russell’s Industry Classification Benchmark
- All equity stocks listed on Boursa Kuwait will be classified under the ICB classification standard from 03 June 2018
- Integrating ICB will allow Boursa Kuwait to access a single, globally recognised industry classification structure
- Reflects Kuwait’s ongoing commitment to facilitate international investment
FTSE Russell, the global index, data and analytics provider, announces today that its Industry Classification Benchmark (ICB®) has been licensed by Boursa Kuwait for all equity stocks listed on its markets. Boursa Kuwait will adopt the ICB standard from 03 June 2018.
ICB is a comprehensive, globally recognised standard, operated and managed by FTSE Russell for categorising companies and securities across four levels of classification (Industry, Supersectors, Sector, and Subsector*). Each company is allocated to the Subsector that most closely represents the nature of its business, which is determined by its primary source of revenue or other publicly available information.
ICB has been adopted by stock exchanges around the world including Athens Stock Exchange, Borsa Italiana, Cyprus Stock Exchange, Euronext, Johannesburg Stock Exchange, London Stock Exchange, NASDAQ OMX, Singapore Exchange, SIX Swiss Exchange and Taiwan Stock Exchange. Approximately 100,000 securities are classified worldwide offering increased clarity and universality that can be applied by the global investment community. More information on the ICB can be found here.
Gary Rynhoud, Head of Middle East and Africa, FTSE Russell:
“Boursa Kuwait’s adoption of ICB’s globally recognised classification standard will support the local bourse in offering increased transparency, structure and standards to meet the needs of the global investment industry and support increased international awareness and investment into Kuwait.
“The ICB follows a rigorous and transparent rules-based methodology and we are delighted that Boursa Kuwait has chosen ICB to assist it in bringing their services in line with the practices of the global investment community.”
Khaled Abdulrazzaq AlKhaled, CEO, Boursa Kuwait:
“Adopting FTSE Russell’s Industry Classification Benchmark ensures that our bourse will adhere to international standards and increase transparency as well as adopt universal benchmarks, allowing the exchange to flourish and expand. Our goal of achieving worldwide status and becoming a regional leader just became a little closer with this step, an important milestone on our journey and goal of developing a liquid, reliable and sound capital market providing issuers with efficient access to capital, and investors with diverse return opportunities, evolving into a leading regional exchange.”
Following FTSE Russell’s Annual Classification Review in September 2017, Kuwait will be promoted to Secondary Emerging market status from September 2018. This will become effective in two 50 per cent tranches in conjunction with the FTSE GEIS semi annual review in September 2018 and the quarterly review in December 2018.
* 10 industries; 19 Supersectors; 41 Sectors; 114 Subsectors
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