Aramco’s Inclusion in Indexes Seen Underpinning Stock - 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, the level sought by Crown Prince Mohammed bin Salman. The stock briefly traded above that mark on its debut last week, and closed above it for the first time Monday.
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, the level sought by Crown Prince Mohammed bin Salman. The stock briefly traded above that mark on its debut last week, and closed above it for the first time Monday.
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