Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

S&P Dow Jones may lift Saudi Arabia to emerging market status

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/17/2018 | 05:32am CEST
A vehicle drives past the King Abdullah Financial District in Riyadh

DUBAI (Reuters) - Equity index compiler S&P Dow Jones said it was consulting investors on whether to upgrade Saudi Arabia to emerging market status, a new sign of growing interest in the kingdom among global fund managers.

An upgrade by S&P Dow Jones could draw more foreign money to the Saudi stock market, although considerably less than the amounts linked to similar upgrades by MSCI and FTSE Russell, fund managers believe.

S&P Dow Jones has been considering a Saudi upgrade for several years but decided against one last year because of limited market access for foreign investors. The kingdom is currently ranked as a "stand-alone country".

After reforms such as an easing of licencing requirements for foreign investment in stocks and changes to custody rules, the index compiler has begung gathering feedback from investors, it said in a statement late on Wednesday.

It is asking whether Saudi Arabia should be upgraded, whether that should happen all at once or in stages, and whether the change should occur as soon as September this year, in 2019 or later.

FTSE Russell decided in March to begin upgrading Saudi Arabia in March 2019, which fund managers expect will ultimately attract about $5 billion of "passive", index-linked money.

MSCI will decide on the issue in June; an MSCI upgrade could attract around $10 billion in passive funds.

S&P Dow Jones estimated Saudi Arabia could ultimately have a 2.57 percent weighting in its emerging benchmark index. It did not immediately respond to a question on how much money is benchmarked to that index.

(Reporting by Andrew Torchia; Editing by Eric Meijer)

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL -0.68% 26562.05 Delayed Quote.7.46%
NASDAQ 100 0.23% 7548.7507 Delayed Quote.17.74%
NASDAQ COMP. 0.08% 7993.2481 Delayed Quote.15.70%
S&P 500 -0.35% 2919.37 Real-time Quote.9.57%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
09/24Global stocks pressured as U.S.-China trade fight revives growth fears; oil elevated
RE
09/24Stocks pressured as U.S.-China trade fight revives growth fears; oil elevated
RE
09/24WALL STREET STOCK EXCHANGE : Stocks Drop as Hopes for a Trade Truce Fade
DJ
09/24WALL STREET STOCK EXCHANGE : Wall Street falls as U.S.-China tariffs kick in
RE
09/24MARKET SNAPSHOT: U.S. Stocks Close Mostly Lower As Trade War Enters New Phase
DJ
09/24Meet the Bear-Market Stocks Hiding in S&P 500's Record Run--Update
DJ
09/24TSX falls 0.10 percent
RE
09/24WALL STREET STOCK EXCHANGE : Stocks Drop as Hopes for a Trade Truce Fade
DJ
09/24LONDON STOCK EXCHANGE : Sky, Randgold surge on deals while trade war weighs on FTSE
RE
09/24WALL STREET STOCK EXCHANGE : Stocks Drop as Hopes for a Trade Truce Fade
DJ
Latest news "Markets"
Advertisement