(MENAFN - Kuwait News Agency (KUNA)) By Mohammad Kamal KUWAIT, Dec 29 (KUNA) -- Plans to introduce primary, secondary and auction markets to Boursa Kuwait will bring the national stock exchange up to par with emerging markets amid Kuwait's plans to become a regional financial hub, experts said.

The new classifications, based on liquidity, market value, turnover, nominal value and operational years, will be in the best interests of investors and listed companies alike, analysts suggested in separate remarks to KUNA.

The plans would also offer the potential to attract other targeted sectors, such as oil and family-owned companies.

International Financial Advisors (IFA) chairman and CEO Saleh Al-Selmi described the move as "crucial," saying it would provide catalysts and do much to separate well-performing companies.

However, Al-Selmi said it would require alleviating obstacles that face listed firms, particularly those still suffering from the impacts of the international financial downturn of 2008 and other resulting crises.

Therefore, the stock exchange should be on a constant lookout for the problems that face many listed firms, particularly those operating in the financial and banking sectors - both of which are extremely significant to the pace of trading, said Al-Selmi.

As the measures are already in place in many other countries, Arzan Financial Group vice chairman and CEO Jassem Zainal said it would improve liquidity and boost the Kuwaiti market thus attracting further local and foreign investors.

Determining the position of each company would also be an easier task, Zainal added, therefore, it is necessary to keep abreast of global market standards and classifications.

But some questions have been left unanswered, leaving it open whether the move would be a success.

"What is the number of companies each of market will hold? What is the timeframe for the assessment (ahead of each classification)?," Managing Director of Athra Real Estate Maitham Al-Shakhs said.

Al-Shakhs is also sceptic of the pricing system of stocks, which he suggested, currently, is "expensive and risky," and said firms wonder when the measures are to be enforced in order to be able to resolve any impending problems.

Listed companies await clarifications from the Capital Markets Authority, the state securities regulator, and KSE regarding these questions. (end) mka.sd

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