The Saudi stock exchange has made a positive weekly performance in which it managed to accomplish around 177 points of profit, amid a remarkable progress in the monetary liquidity averages that jumped 17.9 percent on weekly basis.
The value of total trading in last week reached around SAR12.78 billion (USD3.4 billion) compared to SAR10.84 billion (USD2.9 billion) the week before, that is a progress of 17.9 percent.
These updates coincide with a time when Global index compiler MSCI has penned an agreement with the Saudi Stock Exchange (Tadawul) to create a joint tradeable index that it hopes may lead to the growth of exchange-traded funds and other investor products.
MSCI reclassified Saudi Arabia as an Emerging Market in June as part of their annual market classification review.
“Saudi Arabia has undergone a remarkably rapid period of change in the past few years,” said Henry Fernandez, chairman, and CEO of MSCI.
He added, “This joint index is possible as a result of the kingdom’s adoption of international standards and desire to create additional investment opportunities for domestic and international investors.”
Khalid Al Hussan, CEO of Tadawul, said that the creation of the joint index “provides a strong foundation for the development of future index futures and other exchange-traded products.”
“As the Saudi market is fully integrated into global emerging market indices, including MSCI, the launch of an index will pave the way for ETFs and other products that enable investors to broaden exposure and diversify and risk while enhancing the overall efficiency of the market,” he added.
