MSCI adds first 30 Saudi stocks to EM index
Index provider MSCI will add 30 Saudi Arabian stocks to its Emerging Markets index for the first time this month as the country moves from being a standalone entity to an emerging market.
In its semi-annual index rebalance, the business said the addition would see 30 securities added, representing a 1.42 per cent of the Emerging Markets index, on 28 May. Further stocks would be added in a second phase in August 2019.
The inclusion of Saudi Arabian stocks was first announced by MSCI last June when it said Saudi Arabia would eventually make up 2.6 per cent of the EM index.
As well as this, eight Argentinian stocks would also be added to the same index, representing a 0.26 per cent weighting, after the country was upgraded from Frontier to Emerging Market status.
Lastly, the weighting of China A shares in the EM index was increased by 26 shares, making the weighting of A shares some 5.25 per cent in the MSCI China index and 1.76 per cent in the EM index. This was the first step in a three-stage process for A shares with a further 0.15 per cent to be added in August and 0.2 per cent in November.
China A shares, which were historically only available to domestic Chinese investors, were first made available in the EM index in June 2018.
AUTHOR
Laura Dew
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
