Markaz Launches Futures service in Kuwait Stock Exchange

13/08/2008

Markaz launched the Futures Trading which aims to provide investors with a leveraging tool to finance their stock market acquisition of companies listed in Kuwait Stock Exchange. With this service, the investor pays 40% of the transaction value plus an interest premium while the 60% is paid by Markaz. The contract terms available for futures are 3 months, 6 months, 9 months, and 12 months. Amani Al Omani, Senior Vice President – Local and GCC Investments, Markaz said "The futures service is an effective financial leverage tool that falls under the supervision of Kuwait Stock Exchange. It gives the investors full shareholders' rights of selling all or part of the shares under the contract on or before maturity at any price higher than the price stated in the contract." "Derivatives, in general, are high risk–high return investment tools. In order to control the risks, we will monitor the exposure and diversify the offers to avoid any concentration risk on the stocks available for any futures transactions." “It is worth mentioning that with over KD 1 billion assets under management in the local market, Markaz ranks the first in Kuwait in terms of market share in the fund management industry, with a market share of 25%, and the fourth in the GCC with a market share of 8%.” Kuwait Financial Centre S.A.K. 'Markaz', with total assets under management of over KD 1.4 (USD 5.32 billion) as of June 30, 2008, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997; and has been awarded a BBB+ corporate rating by Capital Intelligence Ltd. -Ends- Photo Caption: Amani Al Omani – Senior Vice President, Local & GCC Investments, Markaz.