Dubai: Traded value on major Gulf bourses fell on Wednesday after Saudi Tadawul index was included on the MSCI emerging market index.
Traded value on Saudi Arabia’s Tadawul fell to 3 billion riyals (Dh2.93 billion) — down from 27 billion riyals — as buying triggered by the MSCI emerging market upgrade subsided.
The Tadawul index fell 1.6 per cent on Wednesday, after gaining more than 2.5 per cent in the previous session.
“Saudi Arabia has an exciting reform and growth story to tell and its inclusion into the MSCI Emerging Markets Index is a significant milestone,” Bassel Khatoun, managing director, Frontier and MENA, Franklin Templeton Emerging Markets Equity told Gulf News.
“Its emerging markets status reflects the wide-ranging capital market reforms it has made over the last few years to bring its equity market infrastructure in-line with international standards,” Khatoun added.
MSCI, the index provider, added the Tadawul index to its emerging market index at the close of trading on May 28, with a weight of 1.42 per cent — the highest in the region.
About 30 Saudi stocks were added in the first tranche.
The second step will come in the August 2019 Quarterly Index Review.
Al Rajhi Bank closed 0.87 per cent lower at 68.30 Saudi riyals, while Saudi Basic Industries Corp. closed 0.36 per cent lower at 110 riyals.
Alinma Bank closed half a per cent lower at Dh23.88.
Meanwhile, the Dubai Financial Market general index closed 0.28 per cent lower at 2,599.70.
The weakness was due to the fall in Emaar Properties, which ended 1 per cent lower at Dh4.41.
Traded value on Dubai bourse fell to Dh212 million from Dh500 million in the previous session.
Dubai Islamic Bank closed 0.40 per cent higher at Dh5.02, while Arabtec closed nearly a per cent higher at Dh4.25.
The Abu Dhabi index jumped more than a per cent due to buying in First Abu Dhabi Bank and Etisalat. The Abu Dhabi index closed 1.56 per cent higher at 4,866.18.
First Abu Dhabi Bank closed at Dh14.28, up more than 3 per cent. Etisalat shares closed 0.91 per cent higher at Dh15.60.
