Argentina and Saudi Arabia to join MSCI emerging markets index

23 June, 2018, 13:32 | Author: Natasha Holloway
  • Saudi Aramco Clears Another IPO Hurdle |

The index will reclassify Saudi Arabia with implementation of its indexes starting in June 2019. Saudi Arabia hopes to sell 5 percent of the world's largest oil exporter, valuing the company at more than $2 trillion.

South Africa's rand fell 0.8 percent, extending early losses after data showed the current account deficit widened more than expected in the first quarter to register its largest shortfall in two years. Separately, MSCI said it would upgrade Argentina to the category as well.

MSCI also said it will include the MSCI Kuwait Index in its classification review next year for a potential move from frontier to emerging markets.

He said: "It's a change in the universe but frankly, it doesn't make that much difference".

Index maker MSCI Inc., a major indirect decision maker on asset flows due to the growth of passive equity investing, awarded emerging market status for the first time in almost a decade.

"It is a recognition of the progress Saudi Arabia has made in implementing its ambitious capital markets transformation agenda".

Maurel estimates it will lead to $35 billion of inflows. FTSE will bring Saudi stocks on board in several stages between March and December 2019, while MSCI said on Wednesday the kingdom would enter in phases coinciding with index reviews in May and August 2019.

Anita Yadav, head of fixed income research at Emirates NBD, told Khaleej Times that the inclusion of Saudi equities into the MSCI EM index could trigger passive inflows of $10 billion. Around $3bn in foreign flows have already come into the Saudi market in 2018, taking total foreign investment in the Tadawul stock exchange to approximately $9bn.

Melania Trump makes surprise visit to US-Mexico border
A spokesman for Mrs Trump shot down claims the jacket was meant to make a statement, saying: 'It's a jacket. The pair of statements from the first lady amounted to an unusual public intervention by Mrs.

"It is our job to ensure the market is ready for such events, and this is what we have done", he added. "The part privatisation of Aramco is vital for boosting the government's forex reserves and GDP growth outlook through higher investment".

In the past three years, the Saudi stock market "has become much more open and much closer to worldwide standards", said Mazen Alsudairi, head of research at Al Rajhi Capital Riyadh.

The decision, which came as part of MSCI's semi-annual index review, follows the implementation of regulatory changes in the Saudi Arabian equity market which opened to global institutional investors. The global listing of the oil giant has been shelved for the time being.

Other Gulf markets declined in largely muted trading as many investors are still on holiday for the Muslim festival of Eid.

"As of today, foreign investor ownership in the Saudi market is around $9.2 billion, and we expect this ownership to increase until the actual inclusion date". Allowing foreign funds into the Saudi stock market will facilitate the sale of the planned IPO.

"Saudi Arabia's market performance over the next few sessions is of little relevance in our view. In some ways, Saudi's local market meets these thresholds to a higher level than Argentina does".

"It is very good to have more opportunities for investors to invest", said Akira Takei, a fund manager at Asset Management One in Tokyo, which oversees around US$500 billion.



England will beat Panama. The ant pundits have spoken
As a youngster, Sterling and his sister went to work with their mum, waking up at five in the morning and helping her clean hotel toilets.

Panama defender Cummings fires warning to England
Southgate has rejected reports that notes from a training session revealed his starting XI for Sunday's clash with Panama . Until the manager actually names the team it doesn't matter what comes out or leaked or anything.

Man arrested in rapper XXXTentacion's shooting death
The 20-year-old hip hop star - real name Jahseh Dwayne Onfroy - was shot dead while sitting in his vehicle in an ambush on Monday. Monday when XXXTentacion , 20, of Parkland whose given name is Jahseh Onfroy , drove his BMW to the motorcycle dealer.

BJP rubbishes reports of JD(U) skipping yoga day event
On this day, which is dedicated to the inner and outer well-being of human body, people across the world practice yoga in groups. Yoga does the work of joining these pieces", Modi said in his 15-minute address.

'I really don't care': Melania Trump jacket stuns on migrant visit
But then there was the curiously juvenile Zara jacket, which had the words "I really don't care, do U?" Liberty is in Mrs. Other messages shouted on Twitter , Facebook and Instagram: "Rise up" and "I have no idea what I'm doing".

Drive My Car! Watch Paul McCartney's epic Carpool Karaoke with James Corden
Corden responded, "That's the most attractive story I've ever heard", and then the two sang the song together. Later in the clip, they're seen taking a visit to Macca's family home, where he hasn't been in over 50 years.

Oil Falls on Spiraling US-China Trade Dispute, Rising Output
Non-OPEC members including Russia, Oman and Mexico also agreed to cut 558,000 bpd off their production to stabilise the market. Indeed, the single largest factor that could push prices down going forward would be a sizable increase in OPEC plus supply.

U.S. prepares for return of war dead remains from North Korea
Beijing and Washington have held three rounds of high-level trade talks since early May but have failed to address Mr. About 7,700 U.S. military personnel remain unaccounted from the 1950-1953 Korean War, U.S. military data shows.

Banned Blatter arrives in Russian Federation for World Cup
Speaking to Sky Sports News, Blatter said: "I think England, or Ireland, they deserve to organise the World Cup". England bid for this year's tournament but lost out to Russian Federation despite being one of the favourites.

USA court backs states over web sales tax
South Dakota has estimated that it could take in up to $50 million a year in additional revenue with these taxes being collected. In response to the ruling, the stocks of several internet retailers, including Amazon, eBay and Wayfair , all dropped.