Friday 19 October 2018

Khashoggi affair unlikely to derail Saudi Arabia index inclusion | Financial Times

Khashoggi affair unlikely to derail Saudi Arabia index inclusion | Financial Times:

Does alleged extrajudicial death by dismemberment have any bearing on investment decisions? It’s not a question you hear every day, but it is one investors will have to address in the approach to Saudi Arabia’s inclusion in emerging market equity indices next year.

The inclusions seem certain to go ahead. A spokesperson for FTSE Russell, which will add Saudi equities to its Emerging All Cap Index from March, to a weight of 2.88 per cent, said that in the light of the Khashoggi affair it had nothing to add to its decision, taken in March this year.

MSCI, which will add Saudi Arabia to its Emerging Markets index from May, to a weight of 2.6 per cent, declined to comment.

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