Posted by mylastresort in analysis, kuwait.
Tags: Intervention, KIA, KIC
Contrary to many statements in the news the Kuwait Investment Company (KIC) funds have not invested in the Kuwait Stock Exchange (KSE), yet. The KIC has received the funds for investment but decided not to act. Even after knowing that the funds were coming, they decided not to prepare for the investment until the funds arrive. Now that the funds were received, the company just decided to form a committee to study the potential investments. No statement was made public on behalf of the company.
In a press release on Monday, the government announced plans to invest KD 1 billion in the market. Due to the reckless behaviour on behalf of the KIC, investor confidence has reached an all time low. Any government press release will not be regarded as fact and dismissed due to the lack of trust in the government following the actions taken by KIA [Correction] KIC.
Posted by mylastresort in analysis, kuwait.
Tags: Intervention, KIA, KSE
First 5 minutes of market open
The Kuwait Stock Exchange opened above 1.5% and rose over 200 points within the first 5 minutes. Nearly all shares have reached their daily limit highs. These actions follow the previous day announcement by KUNA regarding the KIA investment’s to take place on Wednesday.
“The market is reacting to the Minister of Finance’s statement regarding the portfolio injection… Investors are capitalising on this opportunity because all blue chips were limit down on Monday. I think the trend will reverse. All of the key stocks were limit up from the moment they opened, with huge bids.”
- Ammar Hajeyah, Assistant Manager, Asset Management, Global Investment House
———–
Update:
10:22am KSE up, 2.96% or 242.7 points
Posted by mylastresort in analysis, kuwait.
Tags: KIA, kuwait, SWF
Kuwait’s Sovereign Wealth Fund (SWF), The Kuwait Investment Authority, has made public that it will begin investing in the local bourse. In a statement published on KUNA [kuna.net.kw], the official news agency, it states:
“Kuwait Investment Authority allocates its share in … fund to the Kuwait Investment Company so that the portfolio’s operations can start on Wednesday”
- KUNA alert without further details
Since the report was publicized after the market closed a massive rally will occur tomorrow, Tuesday, in preparation of the investment by the KIA. Many statements were made in the past regarding the investment by the KIA but no action was taken and investors remain hesitant to believe any statements by the government.
Posted by mylastresort in analysis.
Tags: bahrain, Bankruptcy, Doha, Dubai Financial Markets, Great Depression, KIA, KSE, Kuwait Investment Authority, Kuwait Stock Exchange, Lehman Brothers, qatar, Stock Market
The Kuwaiti Stock Exchange (KSE) continued to suffer from panic selling reaching a limit low for the day. Nearly all the companies on the exchange reached their daily limits dropping the maximum (approx. 5%) in the session. News that the Kuwait Investment Authority (KIA) will be investing $1 billion is eagerly awaited by the market participants having suffered large losses in a short period. Losses were felt all across the globe on Monday, the day is being referred to as “Black Monday” once again following Lehman Brothers collapse.
The global markets have suffered the most massive losses ever before witnessed in the past century. The US economy is being compared to the Great Depression of the 1920’s while the European union has not seen such catastrophe in its short history to compare it to. While in the Gulf the markets continued their decline since the beginning of the month.
Here is a summary of closing indexes:
- Kuwait Stock Exchange -3.80%
- Abu Dhabi Index -4.35%
- Dubai Financial Markets -1.71% (had reached -9.5% in the day)
- Doha Stock Market -7.06%
- UK FTSE 100 -3.92%
- Dow Jones Industrial Average (DJIA) -4.42%
- S & P 500 -4.71%
Posted by mylastresort in analysis, sovereign funds.
Tags: Citigroup, investment, KIA, kuwait, Kuwait Investment Authority, Lehman Brothers, Merrill Lynch, subprime, The Times Newspaper
Kuwait Investment Authority (KIA) has announced that it intends on investing greater amounts into the US financial sector. Financial institutions such as Merrill Lynch and Citigroup are profiting from the ‘fear that banks are short of cash’ despite collectively (and publicly) raising nearly $300 billion worldwide recently.
Excerpt from The Times Newspaper, (June 5, 2008):
The Kuwaiti sovereign wealth fund’s continuing interest in Wall Street came as it emerged that Lehman Brothers had contacted overseas investors seeking cash to repair the damage to its balance sheet from an estimated $4 billion of mortgage-related losses this year. Lehman is also preparing a rights issue as an alternative source of cash.
- Source: Times Newspapers Ltd, 2008, (June 5, 2008)
Posted by mylastresort in analysis.
Tags: British Land, GBP, investment, KIA, Kuwait Investment Authority, Nigel Brown, Pounds, Real Estate, St Martins, Sterling, Willis Building
The Kuwait Investment Authority (KIA) has just announced it has purchased British Land’s Willis Building for GBP 400million (Sterling Pounds). This is one of the largest property deals this year. The KIA bought the Foster & partners designed building through its property investment subsidiary – St Martins. In a statement by St Martens the company stated that this is one of a number of deals over the next two years.
“We have an appetite for landmark buildings and this was a rare opportunity to secure one of London’s finest”
-Nigel Brown, St Martins managing director
Signs that the commercial property market in England was declining was evident when British Land agreed to pay St Martins ‘a sweetner’ of GBP 60 milllion to secure the deal. The cash is equivalent to the rent-free period that insurance broker Willis had negotiated with British Land when it agreed to occupy the building.
Posted by mylastresort in analysis, sovereign funds.
Tags: Bader al-Saad, Industrial and Commercial Bank of China, KIA, Kuwait Investment Authority, Sovereign fund
News sources are confirming that Kuwait Investment Authority (KIA) is considering investing into the booming China market. A delegation headed by KIA’s managing director, Bader al-Saad, are planning a visit late next week to discuss various investment opportunities with Chinese officials.
The KIA will be concentrating on the following sectors:
- Banking
- Industrial
- Agriculture
Previous investments commenced last year in the Industrial and Commercial Bank of China for $720 million have been very profitable for the sovereign fund.
Posted by mylastresort in analysis, sovereign funds.
Tags: Compliance, investment, Islamic, KIA, Kuwait Investment Authority, Shariah
Kuwait Investment Authority (KIA) is planning to boost its shariah compliant investments. The KIA already abides by ‘moral’ investments and ethically does not invest in alcohol production or porography based companies.
“Returns from Islamic financial activities are currently very high due to the growth of the islamic banking industry and the issue of sukuks (Islamic bonds),”
- Bader al-Saad, Head of Kuwait Investment Authority
As of March 31, 2007 the KIA had $213 billion assets under management.
Posted by mylastresort in analysis.
Tags: IPO, KAC, KIA, Kuwait Airways, Kuwait Investment Authority, Private, Sale
The government has begun the highly anticipated sales process for the loss-making Kuwait Airways Corporation (KAC). In January the government approved the plan to sell 40% of the carrier to the public, and 35% to a longterm investor within two years.
The cabinet has asked Kuwait Investment Authority (KIA) has been requested to set up an evaluation of the airlines by international consultancies as the primary objective in the selling process.
Posted by mylastresort in analysis, sovereign funds.
Tags: Europe, investment, KIA, kuwait, Kuwait Investment Authority, Quick Facts, US
Quick facts – Kuwait Investment Authority:
- Kuwait’s soverign wealth fund is known as the Kuwait Investment Authority (KIA)
- Manages the surplus wealth of the world’s seventh-biggest oil exporter
- Assets under managment: $213 billion (as of Mar 31st 2008)
- Invests between 76% and 86% of assets in United States & Europe
- Asian & Japanese investment make up 13% to 17% of total holdings
- Emerging markets comprise 4% to 6%
- Invests between 55% and 65% in total assets in Global equities
- Invests about 15% to 22% in Bonds
- Invests roughly 8% to 12% in Real Estate
- About 4% to 6% is invested in alternative investments
- 3% to 7% is held in cash
- Bought large portions Citigroup ($3 billion) and Merrill Lynch ($2 billion), 2008
… [KIA is] Interested in investing in financial services and real estate firms in the United States and Europe to benefit from lower asset prices… – Managing Director Bader al-Saad
