Saudi Arabia shares set for $20 billion windfall

Around $20 billion in passive inflows are likely to be spurred by Saudi Arabia’s inclusion in major emerging markets stock indices. (Reuters)
Updated 18 March 2019
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Saudi Arabia shares set for $20 billion windfall

  • The Kingdom will be the biggest recent addition to the global indices
  • Saudi stocks join the FTSE Emerging All Cap Index on Monday

LONDON: Around $20 billion in passive inflows are likely to be spurred by Saudi Arabia’s inclusion in major emerging markets stock indices from Monday, Reuters reported.
The Kingdom will be the biggest recent addition to the global indices. It joins the MSCI Emerging Markets Index in May, with a weight of 2.7 percent.
Saudi stocks join the FTSE Emerging All Cap Index on Monday.
The move is set to push up foreign ownership of Saudi shares from around 2 percent to around 6 percent, according to Al Mal Capital data quoted by Reuters.
“The 2.7 percent pro-forma benchmark weight (within the MSCI index) is much more significant than prior index inclusions during the past decade,” Alexander Redman, head of global emerging market equity strategy at Credit Suisse, told the news agency.
“And given that the proportion of assets under management within emerging markets passive funds is much larger than during previous index inclusions, it means there will be a significant amount of net foreign buying of Saudi equities.”


Iraq has enough oil capacity to meet customer needs: oil minister

Updated 25 April 2019
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Iraq has enough oil capacity to meet customer needs: oil minister

  • Thamer Ghadhban also says there are no acute oil shortages for the time being
  • but Iraq would continue to monitor the market to assess the need for additional supply

BAGHDAD: Iraq’s oil minister said on Thursday his country had the capacity to increase its oil production to 6 million barrels per day (bpd) if needed, but it was committed to OPEC-led output cuts and would not take unilateral action to boost supply.
Thamer Ghadhban also said there were no acute oil shortages for the time being, but Iraq would continue to monitor the market to assess the need for additional barrels at the next OPEC meeting.
On Monday, the United States decided not to renew exemptions from sanctions against Iran granted last year to buyers of Iranian oil, taking a tougher line than expected and triggering a rally in oil prices on fears of oil supply shortages.