MENA markets figure heavily in MSCI index changes

IndicesIndex compiler MSCI has revealed a number of changes to its indices that will directly affect MENA markets.

On June 1, MSCI will launch two standalone Saudi Arabia indices, one with 19 constituents and another, a small-cap index, with 39. The launch will happen the day registration in Saudi Arabia opens for qualified foreign investors, which will be able to invest directly in the Saudi stock exchange for the first time on June 15.

MSCI has also revealed it will add six stocks to its Frontier Market Index and remove nine. The three largest additions are Boubyan Bank, based in Kuwait, Ciments Du Maroc, a cement company from Morocco, and Hub-Power Co, an energy firm from Pakistan.

The index provider has also added 47 securities to its main global Islamic index and deleted 66. The three largest additions to the MSCI ACWI Islamic Index are Facebook, the social network, The Priceline Group, a US online travel firm, and Fast Retailing Company, a Japanese retail firm that owns Uniqlo and other brands.

The changes to existing indices were announced after MSCI’s semi-annual index review and will be implemented on May 29.

©2015 funds global mena

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