MSCI will include the Kingdom in its influential emerging markets index this summer, FTSE Russell and S&P Dow Jones recently admitted Saudi Arabia’s stock market into their respective emerging market indices.
Sunday 05, May 2019 BY KUDAKWASHE MUZORIWA
BlackRock and HSBC Global Asset Management have each launched exchange-traded funds in the past month that will track the MSCI Saudi Arabia Index, which focuses on mid and large-cap companies in the Kingdom.
The HSBC unit, which manages $451bn started that the launch was in response to interest from international investors following the inclusion of Saudi Arabian equities into global indices.
Additionally, BlackRock’s new product, a Ucits version of an ETF available for US investors, was launched in response to significant client demand and in anticipation of the MSCI index inclusion.
The HSBC MSCI Saudi Arabia 20/35 Capped Ucits ETF began trading on the London Stock Exchange (LSE) last week, while BlackRock’s iShares MSCI Saudi Arabia Capped Ucits ETF was launched on 10 April and it attracted $5.2 million in assets in the first three weeks of trading.
BlackRock is also said to be considering to open an office in Riyadh, reported Financial Times.