Saudi stocks to weigh 4.41% on MSCI Emerging Markets post-review: SNB Capital

Tadawul trading screen 

SNB Capital said the weight of the Saudi stocks on MSCI Emerging Markets Index will rise from 4.32% to 4.41% following the review. Meanwhile, on the MSCI World Index the weight of Saudi stocks edged up from 0.44% to 0.45%.

Gross cash flows will range between SAR 4 billion and SAR 4.5 billion, with net foreign flows of SAR 2 billion, the brokerage said.

ACWA Power Co.’s core flows will likely reach SAR 2 billion, which implies an average daily growth of nearly 11 days based on trading volumes trailing the last three months. Meanwhile, SAL Saudi Logistics Services Co. is forecast to generate local cash flows of SAR 550 million, reflecting a two-day average turnover.

Americana Restaurants International, listed on the Saudi Exchange (Tadawul) and Abu Dhabi Securities Exchange (ADX), is forecast to generate net cash flows of SAR 120 million, a portion of which was injected into Tadawul. Based on the two-market aggregate turnover, the stock implies a two-day average traded value.

MSCI Inc. recently announced the results of its periodic review, adding SAL to the MSCI Global Standard Index, Argaam reported.

Meanwhile, MSCI excluded six companies from MSCI Saudi Arabia Small Cap Index, which are Amlak International Finance Co., Fawaz Abdulaziz Alhokair Co.  (Cenomi Retail), Methanol Chemicals Co. (Chemanol), Riyad REIT Fund, Saudi Company for Hardware (SACO) and Saudi Arabia Refineries Co. (SARCO).

The index added seven firms to MSCI Saudi Arabia Small Cap Index, namely, Al-Babtain Power and Telecommunication Co., Etihad Atheeb Telecommunication Co., Mediterranean and Gulf Insurance and Reinsurance Co.  (MEDGULF), Middle East Pharmaceutical Industries Co. (Avalon Pharma), Saudi Advanced Industries Co.  (SAIC), Saudi Paper Manufacturing Co. and Walaa Cooperative Insurance Co.