Today marks the beginning of Saudi Arabia’s inclusion on MSCI Emerging Markets Index, as passive inflows are expected to flock to Riyadh.
This first stage of inclusion is expected to attract around SAR 18.75 billion in passive inflows.
According to the requirements of global index managers, most of today’s transactions will be during the daily closing auction. During this period, investors will be able to determine the stock prices based on supply and demand in order to reach a fair price.
For today, the Saudi Stock Exchange (Tadawul) has extended the closing auction session to 20 minutes, instead of the usual 10 minutes. The daily closing auction session takes place from 3:00pm-3:10pm Riyadh local time. Investors can submit orders during these 10 minutes.
On May 14, MSCI said it will add 30 Saudi securities— representing an aggregate weight of 1.42 percent— in the MSCI EM index as of the close on May 28. The second tranche inclusion is expected in August.
This is a list of 30 Saudi companies listed in MSCI Tadawul 30 Index that are likely to be included in the Morgan Stanley Emerging Markets index. However, the stocks in the list are not final and they may change once MSCI formally announces the stocks today: