Investors Bullish on Saudi Stocks as Key FTSE Decision Eyed - Bloomberg

Investors Bullish on Saudi Stocks as Key FTSE Decision Eyed - Bloomberg:

"Investors expect FTSE Russell to include Saudi Arabia in the emerging markets category later this week, a decision that would trigger billions of dollars in inflows to the biggest Middle Eastern stock market.

An announcement from the index compiler is due on March 28, the first of two decisions that will potentially put the kingdom on the radar of fund managers, investors say. MSCI Inc. will provide the second in June, with a positive outcome setting the stage for a planned initial public offering of shares in Saudi Aramco, expected to be the biggest ever and key to a series of reforms taking place in Saudi Arabia. After gaining Tuesday, the country’s main stock gauge is up 9.7 percent this year, versus 3.1 percent for emerging markets.

Inclusion by FTSE Russell could draw about $5 billion from passive investors starting next year, with twice that amount coming if MSCI follows suit, according to estimates by EFG-Hermes Holding. The announcement is expected after markets close in the U.S., and investors in the region estimate it will be positive for the Saudis. Check their views below. "



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