Kuwait Report

Sadoun A. Ali, Chief Executive of KAMCO, a leading asset manager and investment banking company sees capital markets in Kuwait to remain stable in 2012. 

The Kuwait stock ex­change index remains 50 per cent below its level on September 15 2008, when Lehman Brothers imploded in the US.

According to Ali "today, the index is properly valued and in general stocks prices are accurately reflecting companies performance."

Nonetheless, Ali adds "the banking and services sectors and anything related to government expenditures should outperform the indices."

Concluding the interview, Ali pinpoints other culprits of the depressed market, he says "one of the main factors negatively affecting the market is Kuwait's political situation, regional perception of instability and shaken investors confidence.

While most regional bourses have recovered over the past year, the KSE has continued to drift downwards, shedding almost a fifth over the past 12 months. At the same time, liquidity has fallen, after many retail investors – who dominate trading across the region – have largely abandoned the market.

According to KAMCO research latest report, Kuwait Stock Exchange (KSE) market capitalization amounted to KWD 29 bn (US$104 bn) down from KWD 36 bn (US$ 130,6 bn) in 2010. Kuwait Stock Exchange lists 215 companies spanning across 10 sectors. The largest sectors by company composition are the services and investment, with 61 and 52 companies respectively, followed by the real estate and industries, each comprising of 18.0% and 13.0% of the total number of listed companies and by value the list is topped by services, followed by banking and food related companies.

About KAMCO:

About KAMCO Established in 1998 with the mission to significantly alter the local and regional investment landscape, KAMCO is a premier investment company based in Kuwait. A subsidiary of United Gulf Bank (UGB) – the investment banking subsidiary of Kuwait Projects (Holding) Company (KIPCO) – KAMCO was listed on the Kuwait Stock Exchange (KSE) in 2003.

After more than twelve years of conducting business in Kuwait's dynamic investment industry, KAMCO has successfully established a robust reputation for solidity, characterized by its prudent, conservative investment philosophy which has consistently commanded the goodwill of a wide patron-base.

KAMCO's Asset Management Division specializes in customized portfolio management, access to IPOs, and local and international fund management. The Investment Advisory and Research Division tracks the latest directions and trends across regional and local economies as well as equity markets and offers a range of customized services that focus on maximizing returns, mitigating risks, and maintaining capital appreciation for individual and institutional clients. The Company's Financial Services and Investment Division offers a full range of advisory services on mergers and acquisitions, underwriting, private placements, debt issuance and restructuring, and private equity management. In 2011, the Company will further aggressively build upon its core competencies to offer MENA-wide investment management consultancy and services, backed by its proven track-record in stringent risk mitigation, investment product innovation, and a cautious investment approach towards local, regional and international capital markets.

Interview:

Kuwait Capital Market 2012: CMA, Outlook, Equities, Bonds