MSCI adds first 30 Saudi stocks to EM index
Index provider MSCI will add 30 Saudi Arabian stocks to its Emerging Markets index for the first time this month as the country moves from being a standalone entity to an emerging market.
In its semi-annual index rebalance, the business said the addition would see 30 securities added, representing a 1.42 per cent of the Emerging Markets index, on 28 May. Further stocks would be added in a second phase in August 2019.
The inclusion of Saudi Arabian stocks was first announced by MSCI last June when it said Saudi Arabia would eventually make up 2.6 per cent of the EM index.
As well as this, eight Argentinian stocks would also be added to the same index, representing a 0.26 per cent weighting, after the country was upgraded from Frontier to Emerging Market status.
Lastly, the weighting of China A shares in the EM index was increased by 26 shares, making the weighting of A shares some 5.25 per cent in the MSCI China index and 1.76 per cent in the EM index. This was the first step in a three-stage process for A shares with a further 0.15 per cent to be added in August and 0.2 per cent in November.
China A shares, which were historically only available to domestic Chinese investors, were first made available in the EM index in June 2018.
AUTHOR
Laura Dew
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
