Latest news with #marketreform
Arab News
13-07-2025
- Business
- Arab News
Kuwait unveils major capital market reforms to boost efficiency, attract global investments
RIYADH: Kuwait has introduced a central counterparty clearing framework, upgraded brokerage standards, and streamlined settlement systems as part of a sweeping reform to modernize its capital markets and boost investor confidence. The measures, launched as part of the second stage of Phase Three of the Market Development Program, include introducing sub-account numbering to enhance transparency, as well as upgrading IT infrastructure to support future listings of exchange-traded funds and fixed-income instruments such as bonds and sukuk, according to a press release. Led by Kuwait's Capital Markets Authority in coordination with Boursa Kuwait and the Central Bank of Kuwait, the reforms aim to align the country's financial market infrastructure with global standards while reducing risk and enhancing market depth. The Market Development Program is a strategic initiative under the country's Vision 2035 plan, aimed at diversifying the economy, enhancing private sector participation, and modernizing key sectors such as finance, infrastructure, and technology. Mohammad Saud Al-Osaimi, CEO of Boursa Kuwait, said: 'The launch of this phase reflects our unwavering commitment to developing an advanced, efficient trading environment that meets the highest international standards.' He added: 'It is the product of close collaboration across the capital market apparatus and represents a key step in expanding the depth, transparency and resilience of Kuwait's capital market.' Boursa Kuwait Chairman Bader Nasser Al-Kharafi said that the collaboration has played a vital role in advancing market infrastructure and introducing sophisticated products and services that promote a more transparent and dynamic investment environment. He added that these efforts are essential to attracting capital, generating added value for the national economy, and supporting the diversification of income sources. The measure introduced several key reforms, including the implementation of a Central Counterparty Framework to reduce settlement risks and align clearing processes with global standards. It also streamlined cash settlements through the KASSIP system, facilitating smoother transactions via local banks and the Central Bank of Kuwait. Additionally, brokerage firms were upgraded to 'Qualified Broker' status to enhance market structure, while sub-account numbering was introduced to improve transparency under omnibus accounts. Furthermore, IT infrastructure upgrades were made to prepare for the introduction of ETFs and fixed-income trading, including bonds and sukuk, pending necessary legislative changes. This phase marks one of the most significant overhauls since the privatization of Boursa Kuwait, reinforcing the market's role in driving economic growth. 'We greatly value the remarkable efforts that have driven the various phases of the Market Development Program for Kuwait's capital market, a reflection of the power of constructive cooperation between the public and private sectors, which stands as a national model for realizing economic objectives and development ambitions rooted in innovation and professionalism,' Al-Kharafi said. The CMA and Boursa Kuwait reaffirmed their commitment to further developing the market's infrastructure, supporting sustainable growth, and reinforcing Kuwait's status as a premier investment destination. Privatized in 2019, Boursa Kuwait operates one of the GCC's oldest exchanges, driving market modernization and emerging-market reclassification.
Times
10-07-2025
- Business
- Times
Net zero in Labour's electricity pricing overhaul
If only Britain could find a way to harness this endless source of hot air: 'Government puts fairness and affordability at the centre of electricity market reform to deliver system that puts working people first'. And all as it 'drives to deliver clean power mission, protecting families through Plan for Change'. It's the latest from Ed Miliband's energy department, burbling on about Rema — the 'review of electricity market arrangements'. It was kicked off by the Tories in 2022 after Putin's assault on Ukraine sent prices soaring, forcing the government to spend £44 billion subsidising energy bills. And, back then, there was a clear priority: the urgent overhaul of a system that typically sees pricey gas-fired power plants set the UK's wholesale electricity price. It's the result of the 'merit order' formula, where electricity prices are set by the marginal cost of the last generating unit required to meet demand over each half-hour period. Usually, that's gas, which despite generating only about 30 per cent of UK electricity, sets the wholesale price 98 per cent of the time. • Rejection of postcode electricity pricing pleases energy bosses So, has Miliband fixed that? Don't be daft. He's completely ignored it. His fantasyland logic? That Britain's grid will be almost entirely decarbonised by 2030, with gas required only as 5 per cent back-up for when the wind doesn't blow or sun shine. And, as such, it will rarely set the electricity price anyway. Let's hope that utopia arrives — because instead of grappling with the likelihood it doesn't, Miliband vanished down a different rabbit hole. He's spent months looking into the pros and cons of 'zonal pricing', where the transmission system is split into different geographical regions. Consumers and businesses would pay different prices depending on how close they are to local power generation (a wind farm, say), with the likes of grid congestion also taken into account. It would have created a postcode lottery, while deterring investors unfamiliar with the new rules — just when the government's 2030 target requires £40 billion a year of investment in green power. The good news? Miliband's seen off the zonal brigade, sticking to national pricing. The bad? That his Rema now has almost nothing in it. It's a missed opportunity politically too. Yes, Miliband had some stuff about transmission charging reforms to 'provide stronger incentives for investors to build generation where it is needed'. But consumers and businesses are still on the hook for any spike in the gas price — despite there being a relatively simple fix. It was spelt out in May in a report from consultancy Stonehaven, written by Adam Bell, the former head of energy strategy at the business department. • Octopus boss says net zero is in trouble — but he has a solution He recognised gas 'must be gradually wound down to deliver decarbonisation' but 'also must be kept available to secure the system during periods of low renewable generation'. But decoupling it from electricity price was essential. His plan? An 'out-of-market mechanism to manage a gas strategic reserve'. This would entail offering gas producers a fixed charge to cover operational costs plus an agreed return under a 'regulated asset base' model to keep their plants on standby. Sure, there would be tricky talks over returns. But, with the value of their assets dwindling anyway, there's a deal to be done. Miliband could have presented it as a political win for the consumer. Instead, he's brought us a waffly Rema with close to net zero in it. Those Warehouse Reit sheds must be looking prettier. It was only in May that Blackstone cut its proposed 113.4p-a-share cash bid to a firm 109p after a row over the Radway Green site near Crewe. Well, look at the US asset manager now: back again at 113.4p, or 115p including July's 1.6p dividend, valuing the business at £489 million. In the interim Blackstone found itself outbid by Tritax Big Box, with a cash-and-shares offer made up of 0.4236 shares, 47.2p cash and two 1.6p dividends. That's now worth 111.1p, so Blackstone is ahead — a point it has driven home by turning its bid into a straight offer, requiring only majority support, while also acquiring a 10.49 per cent stake. • Private equity firms stuck with investments 'indigestion' The bit missing so far? A recommendation from the Warehouse board, chaired by Neil Kirton, which the tracker funds typically take as their cue. It could look a simple choice too. Yet, even if Big Box doesn't top up its bid, there's not a shedload of difference in the price. Blackstone is providing a cash out at what's still a big discount to Warehouse's net asset value of 128p a share. Big Box is offering investors something else: a bit of cash now plus 6.8 per cent of a larger quoted group with complementary assets. No one needs to make a decision yet, with Warehouse shares closing up 3 per cent at an above-bid 115.4p. This boxing match could still have another round. Saturdays will never be the same again. How will anyone survive without the reassuring thud of some nice junk mail, conveyed by the posties? Ofcom has decided to let the Royal Mail deliver second-class letters on every other weekday, skipping Saturdays altogether. As the regulator's networks chief Natalie Black put it: 'Urgent reform of the postal service is necessary to give it the best chance of survival'. So, quick question: if it's that urgent, why did Ofcom dither for years, leaving Royal Mail's parent company, International Distribution Services, prey to a £3.6 billion bid from the Czech billionaire Daniel Kretinsky. The regulator reckons the rule change will see cost savings 'of between £250 million and £425 million' a year. Capitalise that on a lowly five times earnings and that's a transfer of up to £2.1 billion to Kretinsky. Only Ofcom would wait until a Czech was in the post.
CNA
04-06-2025
- Business
- CNA
South Korean shares rally on post-election policy hopes
SEOUL: South Korean shares rose more than 2 per cent on Wednesday (Jun 4) to their highest in 10 months, as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus policies and market reforms. The benchmark KOSPI rose as much as 2.3 per cent in early trade to 2,761.54, the highest since Aug 1, 2024. Lee began his term on Wednesday, just hours after his victory in Tuesday's snap election, who has vowed to bring corporate reform measures to boost the domestic stock market, raise investment in artificial intelligence, and revive an economy reeling from slowing growth. The securities sector was the top gainer, rising more than 6 per cent, while financial groups jumped more than 3 per cent. Analysts expect the sectors to gain most from market reform pushes. On capital markets, Lee vowed to revive legislation within a few weeks to curb abuses by controlling shareholders of chaebol conglomerates, as part of his "KOSPI 5,000" pledge to double the value of the domestic stock market. The revision to the Commercial Act is seen by market analysts as a fundamental change needed to resolve the so-called "Korea Discount", a tendency for local shares to be undervalued compared with global peers due to low dividend payouts and opaque corporate governance. "We expect to see meaningful progress in capital market and governance reform post-election," Morgan Stanley's analysts said in a note, setting their KOSPI target for June 2026 at 2,800 for the base case and 3,100 for the bullish case. Renewable energy stocks rallied on expectations of a reversal in energy policy away from nuclear energy. HD Hyundai Energy Solutions surged 12.5 per cent to the highest since March 2023, Hanwha Solutions climbed 6.4 per cent, Doosan Fuel Cell gained 5.7 per cent, and CS Wind added 4.9 per cent. As Lee has expressed more conciliatory plans for ties with North Korea and China, stocks with exposure to North Korea, including In The F and Namkwang Engineering & Construction, and those with exposure to China, such as beauty product makers and entertainment firms, advanced. Among major heavyweights, chipmaker SK Hynix gained 6.3 per cent, while rival Samsung Electronics rose 0.70 per cent. "A combination of aggressive industrial policies and expansionary fiscal policies could lead to faster economic growth, at least in the short term," said Kim Jin-wook, an economist at Citi. "The Democratic Party's strong position in the National Assembly may accelerate the implementation of election pledges in the coming years," Kim said. The won was quoted 0.11 per cent higher at 1,375.6 per dollar on the onshore settlement platform, as foreigners bought local shares. In the bond market, the benchmark 10-year treasury bond yield rose by 5.1 basis points to 2.852 per cent, the highest in two months, as Lee has said he would draft a second supplementary government budget of at least 30 trillion won (US$21.84 million) this year to boost economic growth, after a 13.8 trillion won budget passed in May.
