Saudi Tadawul to lure foreign flows on FTSE third phase inclusion
Saturday, 06 22 2019, Category: Economy, Country: Saudi Arabia
The Saudi Stock Exchange (Tadawul) is expected to attract foreign inflows worth SAR 5.2 billion ($1.39 billion) on the back of implementing the third tranche of Saudi Arabia’s addition to FTSE Russell EM index with an inclusion factor of 25% allocated to this tranche, Aljazira Capital said in a report on Thursday.
The closing date of the third tranche will be on Monday, 24 June, the report said.
“Given the size of the inclusion, FTSE Russell has proposed to implement the inclusion of KSA in several tranches in order to ensure mechanisms are operating as expected, thereby minimising price pressure on new constituents and to spread outflows from those markets being sold down,” the Kingdom-based research firm highlighted.