Kuwait Financial Centre (Markaz) has seen the expansion of its market maker portfolio following the successful addition of three companies taking the total to 15 registered securities, a 50% increase since Q4, 2022.
The new companies come across different industries, including telecommunication, petrochemical and financial, namely Boubyan Petrochemical Company (BPCC), Coast Investment & Development Co (Coast), and Kuwait Telecommunications Company (STC).
Markaz will support the three companies in its capacity as a market maker by delivering liquidity and depth, effectively contributing to the overall confidence of market participants, and help to maintain healthy, continuous and robust securities market in Kuwait.
Balancing supply and demand
Market maker is one of several Asset Management services, including funds and portfolio management, offered by Markaz to provide clients with the best opportunities for sustainable wealth creation. It is a tool that aims to create a balance between supply and demand, bridge the gap between buying and selling prices, enabling investors to buy and sell the shares of these companies quickly and at a fair price.
Market making can positively impact the companies’ borrowing costs, the value of their shares, as well as their ability to trade at more fair prices. The service supports the overall development of the Kuwaiti economy by creating a reliable and resilient market, which is essential in encouraging companies to list their shares on the national stock exchange.
“As market maker on some of the country’s leading publicly listed firms, Markaz plays an important role in enabling trade activity, increasing investor interest, and contributing to the development of a robust securities market in Kuwait. Markaz was among the first financial institutions to obtain a Market Maker license from Kuwait’s Capital Market Authority (CMA). We have a dedicated team of trading experts and specialists who provide market making services by adopting superior operating systems in line with international best practices, part of Markaz’s investor-first approach. We are proud of our portfolio of companies and thank them for their continued trust,” said Azzam B Al-Otaibi, Manager, Market Maker, Mena Equities at Markaz.
Today, Markaz operates as an equities market maker for key players across banking, real estate, food distribution, and more. They include Boursa Kuwait Securities Company, Al-Eid Food Co, Kuwait Real Estate Co, Combined Group Contracting Co, Rasiyat Holding Company, Al-Ahli Bank of Kuwait, Arzan Financial Group for Financing and Investment, Kuwait International Bank, Ajial Real Estate Entertainment Company, Dalqan Real Estate Co, Kuwait Investment Company and Egypt Kuwait Holding Co.
Altogether, Markaz’s market maker team has traded more than 28% of total value traded this year on its registered securities, as of July 31st, 2023, with a 99% recorded presence in daily trades, a testament to the company’s level of service excellence.
Boubyan Petrochemical Company was the first private company to invest in Kuwait’s petrochemical industry following its public listing on the country’s stock exchange in 1997. In addition, Coast Investment & Development Co. is one of the leading financial institutions in Kuwait and the region and has been listed on the country’s stock exchange since 1989.
The company also features in Boursa’s Main 50 Index, a Market Capitalisation Weighted Index that reflects the Main Market’s top 50 liquid companies. Kuwait Telecommunications Company (stc) was established in December 2008 as a subsidiary of the stc Group, a world-class digital leader that provides innovative services and platforms aimed at enabling the digital transformation of the region.
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