Stock Exchange Concludes May with 127.28 Million Dinar Trade Volume during MSCI Evaluation
The Kuwait Stock Exchange concluded its trading for May on a robust note Thursday, with total trading volume reaching KD 127.28 million. This surge was primarily attributed to institutional activity connected to the periodic review of Kuwaiti stocks by the MSCI Emerging Markets Index.
As per data published on the official exchange website, the session's busiest stocks included Kuwait Finance House (KD 20.5 million), National Bank of Kuwait (KD 12.8 million), Warba Bank (KD 9.16 million), Human Soft (KD 8.8 million), Mabanee Company (Mabani) (KD 7.85 million), and Gulf Bank (KD 5.2 million). The Elite Market (First Market) accounted for the majority of the liquidity, attracting KD 103.87 million of total trades.
By the session's close, index performance showed a mixed picture:
- The General Index dipped by 6.8 points.
- The First Market Index fell by 9.01 points.
- The Main Market Index edged up by 0.69 points.
- The Main 50 Index recorded the steepest decline, falling 44.01 points.
The market activity was a reflection of investors repositioning in response to the MSCI rebalancing, which typically increases trading in select blue-chip stocks as global fund managers adjust their portfolios.
The importance of the MSCI Emerging Markets Index rebalancing lies in its weight within global investment portfolios and the potential capital flow it can drive. However, as of the May 2025 review, there were no explicit mentions of Kuwaiti companies being added, deleted, or reweighted in the MSCI Emerging Markets Index. The significant additions were focused on companies from the UAE and China.
Notably, the recent rebalance saw more additions and deletions in emerging markets than in developed markets, reflecting a dynamic investment landscape. Emerging markets have outperformed developed markets in 2025, with the MSCI Emerging Markets Index up 6.9% versus a 3.3% drop in the S&P 500. However, long-term challenges remain for many EM equities. Despite the absence of Kuwaiti stocks among the highlighted changes in this cycle, the direct impact on the Kuwait Stock Exchange's market activity from the MSCI Emerging Markets Index rebalancing appears limited.
If Kuwaiti stocks were to be included or reweighted in future, the effects on market activity—including liquidity, trading volumes, and investor sentiment—could be substantial. These effects might include substantial inflows from global passive index funds tracking the MSCI Emerging Markets Index, increased trading volumes, improved liquidity, and positive sentiment driving international and domestic interest.
In the context of the Kuwait Stock Exchange's trading in May 2025, some of the busiest stocks included Kuwait Finance House, National Bank of Kuwait, Warba Bank, Human Soft, Mabanee Company, and Gulf Bank, indicating a high level of institutional investing in the business sector. The MSCI Emerging Markets Index rebalancing, although it did not result in any explicit changes for Kuwaiti companies in this cycle, is known for its significant influence on global finance, potentially attracting capital flows and influencing investor sentiment if Kuwaiti stocks were to be included or reweighted in the future.
