DUBAI (Agencies): Index provider FTSE Russell has added many Saudi stocks such as Saudi Basic Industries, and National Commercial Bank on its global equity index, a move that is expected to attract $500 million in passive flows.
About 80 stocks have been added to the emerging market index, data from the index provider revealed. FTSE Russell is planning to add Saudi Arabia’s stocks in the emerging market index in five phases
“The Phase 1 inclusion of Saudi Arabia is along expected lines and should bring in passive inflows of roughly $700 million. In total, the 5 phases spread out until September should drive in inflows of more than $4 billion,” Vrajesh Bhandari, portfolio manager with Al Mal Capital said.
About 15 stocks have been added in the large cap stocks, while around 28 mid-cap names have been added to the index. Around 36 small cap stocks have been added, the data revealed.
Saudi Arabia’s Tadawul index witnessed a lukewarm response to the inclusion. The Tadawul index closed 0.40 per cent lower at 8,592.01. In the UAE, Aldar Properties and Damac Properties have been downgraded from large-cap to mid-cap stocks. Abu Dhabi Islamic Bank has been added to mid-cap names. Deyaar Development, DXB Entertainments, Union Properties have been downgraded from mid-caps to small-caps. Waha Capital has been removed from the index.
Amlak Finance has been moved from small-cap to micro-cap shares.
