MSCI, whose stock indexes are tracked by investors with about $3 trillion in assets, will extend its review for reclassification of the two countries from frontier status “in order to give additional time for market participants to assess the effectiveness” of the new payment systems in the exchanges, according to a statement.
Trading volumes in Persian Gulf stock markets (BGCC200) have plunged this year as foreign funds trimmed holdings of riskier assets amid regional uprisings and as Europe’s debt crisis deepened. Dubai volumes are at a six-year low while Abu Dhabi’s are at the lowest since 2004. In Qatar, trading is about 43 percent lower than in the same period in 2009. The decision came after a delay in June, when MSCI cited “stringent foreign ownership limits” as a barrier for upgrade.
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