Mubasher: EFG Hermes expects MSCI Inc, the world's largest index provider, to add Boursa Kuwait to its closely watched and widely duplicated emerging-markets (EM) index over the course of the next weeks.

Boursa Kuwait’s inclusion into the MSCI EM index is forecast to attract $2.8 billion foreign inflows to the bourse by May 2020, Al Anba newspaper reported, citing a report conducted by the Egyptian investment bank.

The Kuwaiti bourse’s aggregate weight in border markets is also expected to rise to 31% from 26%, starting from 28 May.

Upon the upgrade, around $815 million inflows is forecast to be attracted by the National Bank of Kuwait (NBK), $677 million by Kuwait Finance House (KFH), Ahli United Bank (AUB) is set to lure $320 million investments, and $280 million is projected to be injected into Mobile Telecommunications (ZAIN).

In the same vein, Agility Public Warehousing and Boubyan Bank are expected to attract $197 million and $132 million in foreign inflows, respectively.

Around $123 million, $100 million, $91 million, and $67 million are forecast to be injected in the Gulf Bank of Kuwait (GBK), Boubyan Petrochemical Company, Mabanee Co., and Burgan Bank, respectively.

At the other end of the spectrum, Human Soft Holding, National Industries Group, Warba Bank, KIB, and Kuwait Projects Holding (KIPCO) are projected to be added into the MSCI Small Cap Index that in return will enable these companies to attract inflows worth $12 million, $8 million, $7 million, $6 million, and $5 million, consecutively.