Aramco shares dip slightly ahead of MSCI inclusion - Reuters

Aramco shares dip slightly ahead of MSCI inclusion - Reuters:

Saudi Aramco shares closed down 0.66% at 37.75 riyals ($10.07) on Tuesday, Refinitiv data showed, ahead of their inclusion into the MSCI emerging markets index, which will be effective on Wednesday.

Its entry into the index will be based on Tuesday’s closing price, which puts the oil company’s market value slightly above $2 trillion - the price tag long sought by Crown Prince Mohammed bin Salman. 

Aramco’s shares will also join the Tadawul index on Wednesday and global benchmark FTSE on Thursday, inclusions that analysts have said should fuel demand, particularly from “passive” investors.

According to a note by Dubai-based Arqaam Capital, based on the preliminary free float assigned by the index compiler, passive inflows from the MSCI inclusion will amount to about $710 million while FTSE’s inclusion could lead to about $400 million in total inflows.