Dubai: Saudi Aramco shares advance for a third session - though the market valuation remained below $2 trillion - with investors focusing on the energy company’s inclusion in major international equity indexes this week.
The stock climbs 1% in Riyadh, extending gains since it started trading on Wednesday to 16%. The main Saudi index also advances, along with peers in the Middle East, as they catch up with global markets after the U.S. and China agreed on a phase-one trade deal last week.
MSCI Inc., which compiles the most popular emerging-market equities index, will add Aramco to its benchmarks using the closing price of Dec. 17. FTSE Russell will follow suit using the price of Dec. 19.
Aramco’s addition will probably trigger about $1.16 billion of flows into the stock, according to Arqaam Capital. EFG-Hermes foresees passive inflows of as much as $1.24 billion.
