Aramco’s Inclusion in Indexes Seen Underpinning Stock This Week - Bloomberg:
Saudi Aramco’s stock should get further support this week from global index compilers, potentially inflating a valuation that’s already seen by many investors as too high.
MSCI Inc., FTSE Russell and S&P Dow Jones Indices will begin to add Aramco to their benchmarks in an accelerated process due to the size of the offering, which could draw more than $1 billion to the Saudi stock market, according to analysts. The oil giant will also become part of the main Saudi gauge, the Tadawul All Share Index.
Buying from index-tracking funds could consolidate Aramco’s market value above $2 trillion, reached briefly last week and widely seen as desired by Crown Prince Mohammed bin Salman.
International investors balked at the stock during the initial public offering.
They pointed to, among other things, Aramco’s dividend yield, which now is just 3.75%, based on the $75 billion a year the company has promised to pay shareholders. That’s lower than peers such as Exxon Mobil Corp.’s 5% and Royal Dutch Shell Plc’s at 6.9%.
No comments:
Post a Comment