Tadawul forecast to lure SAR 20 bln in inflows upon MSCI inclusion: Aljazira Cap

Saudi Arabia’s benchmark Tadawul All Share Index (TASI) is expected to attract SAR 20.2 billion in cash inflows upon the second phase of Tadawul’s inclusion in the MSCI Emerging Markets Index, Aljazira Capital said in a note.

The second stage of the MSCI inclusion will be based on closing prices today on Tuesday, August 27.

The inclusion will increase the weight of Saudi Arabian securities from 1.45 percent to 2.83 percent in the MSCI Emerging Markets Index.

Al Rajhi Bank, Saudi Arabia's biggest listed bank by market capitalization, and the largest weight component is forecast to attract the highest foreign inflows of SAR 3.0 billion, followed by Saudi Basic Industries Corporation (SABIC) (SAR 2.8 billion) and the National Commercial Bank (NCB) (SAR 2.2 billion) 

“The inclusion in the FTSE and MSCI emerging market indices might help the Saudi benchmark lure more foreign investments,” said Aljazira Cap.