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Tadawul Extends Closing Auction Session in 2nd Phase of FTSE Russell Inclusion

Tadawul Extends Closing Auction Session in 2nd Phase of FTSE Russell Inclusion

Monday, 22 April, 2019 - 10:00
A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018. REUTERS/Faisal Al Nasser
Riyadh- Asharq Al-Awsat
The Saudi Stock Exchange (Tadawul) on Sunday announced the extension of the closing auction session to 20 minutes instead of 10 minutes on 30 April only.

This step comes prior to the second phase of inclusion in Emerging Market Index as of 1 May based on the closing prices on 30 April, with an inclusion factor of 15 percent. On 18 March, the first stage of Tadawul’s inclusion into the FTSE Russell was implemented.

The auction of the session before the market inclusion witnessed active trading at SAR1.4 billion (USD373.3 million), including trading on shares worth SAR38.5 million. A total of 5,400 transactions were executed because of FTSE Russell index foreign funds' entry.

Saudi Arabia will be the biggest recent addition to the global indices, the largest of which is the MSCI Emerging Markets Index. MSCI will give the kingdom a weight of 2.7 percent and might even rise to 4.6 percent in case Aramco was listed, said FTSE Russell.

Inclusion of Saudi Arabia into the FTSE Russell Emerging Markets (EM) index will occur in five tranches. The remaining 75% will be implemented in conjunction with quarterly reviews in June 2019, September 2019 and March 2020.

Waqas Samad, CEO of FTSE Russell, said that "Saudi Arabia's promotion to Emerging market status within FTSE Russell's global equity benchmarks is a significant achievement. The CMA and Tadawul have long been committed to improving Saudi Arabia's capital markets infrastructure and today marks a culmination of their efforts to meet the rigorous requirements for inclusion.”

The inclusion represents investor confidence in the Saudi capital market and highlights reforms achieved in tandem with Saudi Vision 2030 and Financial Sector Development Program.

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