Global index compiler MSCI will begin listing the Saudi stock market as part of its Emerging Markets Index (EMI) on Wednesday.
The global index will launch the first stage of listing through 30 Saudi companies to be included in its EMI.
The overall inclusion of the Saudi capital market is expected to reach 50 percent in the first phase while the second phase will be on August 29, representing the other 50 percent of the Saudi market’s companies in the global index.
The listing stage, which will start on Wednesday, will be based on the closing prices of the tradings for 30 Saudi companies on Tuesday (today).
The listing is also expected to contribute to strengthening the Saudi stock market as an attractive investment platform for capital.
In this context, the Saudi Stock Exchange (Tadawul) announced that the closing auction will be extended to 20 minutes (instead of 10 minutes) and the trading period will be extended to 20 minutes (instead of 10 minutes).
Therefore, the closing auction will start at 3:00 pm and end at 3:20 pm, and the trading period will start at 3:20 pm and end at 3:40 pm.
“The extension of the two periods coincide with the implementation of the first phase of the MSCI EMI on Wednesday, according to Tuesday's closing price,” Tadawul explained.
It pointed out that the first phase will represent 50 percent of the stock’s value to the overall total market of the Saudi Stock Exchange in the MSCI Index.
These developments come as MSCI said 30 Saudi Arabian securities would be added to its closely watched and widely duplicated EMI.
It reclassified the Kingdom as an Emerging Market in June as part of its annual market classification review, adding it will enter phases coinciding with index reviews in May and August 2019.
It said these companies represent an aggregate weight of 1.42 percent in the Morgan Stanley EMI.
Saudi Arabia stocks were higher after the close on Monday, as gains in the Insurance, Agriculture, and Food and Energy and Utilities sectors led shares higher.
Tadawul All Share added 0.26 percent on Monday, closing at 8382 points, amid a cash flow of SAR3.7 billion ($986.6 million).
Shares of 98 companies listed on the Saudi stock market were up, with all sectors closing green, except for a slight decline in the pharmaceutical, healthcare, and transportation sectors.
