Middle East funds plan to move aggressively into Kuwaiti stocks as the market prices in expectations that index compiler FTSE will add the Arabian Gulf state to its secondary emerging market index, a monthly Reuters poll found.
At the end of September, FTSE is to announce its decision on whether to include Kuwait and Saudi Arabia in the index. Analysts at Arqaam Capital and EFG Hermes believe the chances of both countries meeting FTSE's inclusion criteria are high, though actual entry into index, once a decision was made, would probably not take place until late 2018.
Sixty-two per cent of respondents expect to raise their allocations to Kuwaiti stocks over the next three months and none anticipate cutting them, according to the poll of 13 regional fund managers conducted over the past week.
That is the most bullish allocation towards Kuwait since the launch of the survey in September 2013.
"Apart from expectations for higher government spending, buyers are hoping FTSE will next month give notice of Kuwait entering its EM index in September 2018," said Akber Khan, head of asset management at Al Rayan Investment.
"Since active investors have long been underweight, this has triggered panic buying of some Kuwaiti blue chips." The logistics firm Agility, for example, has climbed more than 17 per cent in the past two months.
_______________
Read more:
Kuwait's Agility expects settlement of US criminal case to help earnings
Trucking on the road to a technological revolution
_______________
Saudi Arabia's inclusion in the FTSE index has been more anticipated, and funds began building Saudi positions in anticipation of MSCI's decision in June to review Riyadh for possible inclusion in its own emerging market index.
This has left funds with little incentive to keep boosting allocations to Saudi Arabia, especially given the greater vulnerability of Saudi state finances to low oil prices compared to wealthy Kuwait, and the fact that second-quarter earnings at major Saudi firms were uninspiring, another manager said.
Twenty-three per cent of respondents expect to raise exposure to Saudi equities and 15 per cent to reduce them - the least positive stance towards Saudi Arabia since November 2016.
_______________
Read more:
Amlak helps Dubai index close up while Qatar is hurt again
Qatar's non-oil economy takes a hit as crisis lingers
_______________
The latest poll also showed managers have turned negative towards Qatari stocks again, with 38 per cent expecting to cut their allocations and none to raise them. Last month, the balance was 23 per cent on each side.
Many Saudi, UAE and Bahraini funds pulled money out of Qatar in June after their governments cut diplomatic and trade links with Doha on June 5.
Selling appeared to ease in July, but the Qatari market came under renewed pressure in August as it became clear there was little prospect of an early end to the diplomatic rift, and as renewed worries about the impact of the sanctions on Qatar's economy emerged. The Qatari stock index has fallen 11 per cent since June 5.
On Monday, Fitch lowered Qatar's credit rating by one notch to AA-minus with a negative outlook, citing the sanctions. That brought it into line with the other two major rating agencies, Moody's and Standard & Poor's.
The downgrade threatens higher funding costs for Qatari banks, which account for most of the stock market's value, as they seek to replace deposits and loans withdrawn by the other Arab states.
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
Transgender report
Our commentary on Brexit
- Con Coughlin: Choice of the British people will be vindicated
- Sam Williams: Departure is influenced by its sense of place
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
More on Quran memorisation:
While you're here
C Uday Bhaskar: What is India's Indo-Pacific strategy?
Sholto Byrnes: How US and China can get along in Indo-Pacific
Brahma Chellaney: Trump's unpredictability is making China great again
Russia's Muslim Heartlands
Dominic Rubin, Oxford
Mohammed bin Zayed Majlis
Tuesday's fixtures
On Women's Day
Dr Nawal Al-Hosany: Why more women should be on the frontlines of climate action
Shelina Janmohamed: Why shouldn't a spouse be compensated fairly for housework?
Samar Elmnhrawy: How companies in the Middle East can catch up on gender equality
Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'
On Women's Day
Dr Nawal Al-Hosany: Why more women should be on the frontlines of climate action
Samar Elmnhrawy: How companies in the Middle East can catch up on gender equality
The National Editorial: Is there much to celebrate on International Women's Day 2021?
Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
More from Neighbourhood Watch:
Our commentary on Brexit
- Alistair Burt: Despite Brexit, Britain can remain a world power
- Con Coughlin: Choice of the British people will be vindicated
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Simon Waldman: Cautious Israel keeping a low profile
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
War on waste
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part two: how climate change drove the race for an alternative
More from this package
More from this package
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
World Mental Health Day
The five pillars of Islam
1.
2.
3.
4.
5.
More from Neighbourhood Watch:
Mohammed bin Zayed Majlis
E-cigarettes report
SPEC%20SHEET%3A%20APPLE%20IPAD%20(2022)
School uniforms report
KILLING OF QASSEM SULEIMANI
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
Rashmee Roshan Lall: Sound of silence in South Asia
Richard Olson: Why Afghanistan will be very wary
MATCH INFO
Uefa Champions League last-16, second leg:
Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')
Ajax win 5-3 on aggregate
Transgender report
More from Neighbourhood Watch:
MATCH INFO
Champions League quarter-final, first leg
Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)
Matches can be watched on BeIN Sports
Saudi National Day
Zayed Sustainability Prize
The national orchestra
More on Quran memorisation:
More from this package
• Remittance charges will be tackled by blockchain
• UAE's monumental and risky Mars Mission to inspire future generations, says minister
• Could the UAE drive India's economy?
• News has a bright future and the UAE is at the heart of it
• Architecture is over - here's cybertecture
• The National announces Future of News journalism competition
• Round up: Experts share their visions of the world to come
Killing of Qassem Suleimani
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
• Remittance charges will be tackled by blockchain
• UAE's monumental and risky Mars Mission to inspire future generations, says minister
• Could the UAE drive India's economy?
• News has a bright future and the UAE is at the heart of it
• Architecture is over - here's cybertecture
• The National announces Future of News journalism competition
• Round up: Experts share their visions of the world to come
Tomorrow 2021
While you're here
Gavin Esler: Coronavirus offers stinging rebuke to protectionists
Kareem Shaheen: Pandemics can save us from waging wars
Sholto Byrnes: Why the climate change clash will get nastier
The biog
Name: Ayisha Abdulrahman Gareb
Age: 57
From: Kalba
Occupation: Mukrema, though she washes bodies without charge
Favourite things to do: Visiting patients at the hospital and give them the support they need.
Role model: Sheikha Fatima bint Mubarak, Chairwoman of the General Women's Union, Supreme Chairwoman of the Family Development Foundation and President of the Supreme Council for Motherhood and Childhood.
War and the virus
Simon Rushton: War vet raises £12m for health workers
While you're here:
War on waste
Tomorrow 2021
Zayed Sustainability Prize
WORLD CUP SEMI-FINALS
England v New Zealand
(Saturday, 12pm UAE)
Wales v South Africa
(Sunday, 12pm, UAE)
On Women's Day
Dr Nawal Al-Hosany: Why more women should be on the frontlines of climate action
Shelina Janmohamed: Why shouldn't a spouse be compensated fairly for housework?
Samar Elmnhrawy: How companies in the Middle East can catch up on gender equality
The National Editorial: Is there much to celebrate on International Women's Day 2021?
While you're here...
While you're here
Hussein Ibish: Could it be game over for Donald Trump?
Joyce Karam: Trump's campaign thrown off balance
Trump tests positive: everything we know so far
Mina Al-Oraibi: Suleimani death casts a long shadow over decade ahead
Khaled Yacoub Oweis: Hezbollah bids to control Lebanon’s financial system
National Editorial: Hezbollah's murky dealings in Iraq have been unveiled
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Part three: an affection for classic cars lives on
Read part two: how climate change drove the race for an alternative
Read part one: how cars came to the UAE
More from Neighbourhood Watch:
On Women's Day
Dr Nawal Al-Hosany: Why more women should be on the frontlines of climate action
Shelina Janmohamed: Why shouldn't a spouse be compensated fairly for housework?
Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'
The National Editorial: Is there much to celebrate on International Women's Day 2021?
MORE ON AFGHANISTAN
World Mental Health Day
Saudi National Day
The specs: 2018 Maxus T60
Price, base / as tested: Dh48,000
Engine: 2.4-litre four-cylinder
Power: 136hp @ 1,600rpm
Torque: 360Nm @ 1,600 rpm
Transmission: Five-speed manual
Fuel consumption, combined: 9.1L / 100km
More from Neighbourhood Watch:
More from this package
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
