During the late 1970s and early 1980s, after the collapse of the unofficial stock market in Kuwait (known as Souq Almanakh), the Government of Bahrain established the Bahrain Stock Exchange, which officially began operating two years later in June 1989.
The exchange signed a cross listing agreement with the Muscat Securities Market (MSM) in 1995, the Amman Financial Market (AFM) in 1996 and the Egypt Capital Market Authority in 1997. Also, in 1996 a tripartite agreement for cross listing was signed between the BSE and the Kuwait and Muscat Stock Exchanges.
The exchange acts as the securities regulator and undertakes the supervision of the capital market in general—as well as serves as a regular stock exchange.
The Bahrain Stock Exchange Composite Index is calculated on the basis of 25 issues and divided into sub-indices representing different sectors (Banks, Investment, Insurance, Services, Industries, Hotel and Tourism). As of the end of December 1999, it represented 77.33% of the total market capitalization of all listed companies.
© 2001 Mena Report (www.menareport.com)