Kuwait’s main equities index fell a day before its inclusion in FTSE Russell’s emerging-markets gauge, trimming one of the best rallies in Middle Eastern stock markets this year.
A drop just before inclusion isn’t surprising: the same thing happened to stocks in Qatar and the United Arab Emirates when they were upgraded to emerging-market status by MSCI Inc. in 2014. In Pakistan, the main index lost 15 percent last year even after an upgrade.
EFG-Hermes expects $930 million in inflows to Kuwaiti stocks as a result of FTSE’s upgrade, which was first announced last year.
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