Saudi equities weight on MSCI likely to climb to 4.5%: SNB Capital

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SNB Capital said the weight of Saudi equities on the MSCI Emerging Markets Index will likely rise from 4.4% to 4.5%, following the secondary offering of Saudi Arabian Oil Co. (Saudi Aramco), given the uptick of the latter’s weight on MSCI Saudi Index from 7% to 9%.

This change is expected to lead to negative flows ranging between SAR 3-3.8 billion from Aramco's shares, reflecting coverage of 9-10 days based on the average daily value for three months, said the brokerage.

MSCI Inc. implemented today, June 12, some changes to its indices due to the exceptional secondary offering of Saudi Aramco, effective from June 13, according to Argaam's data.

The Saudi government and Aramco recently finalized the secondary offering of 1.545 billion ordinary shares in the latter, representing about 0.64% of its issued shares.