FTSE Russell poised to add Saudi Arabian stocks – billions of dollars set to pour into market

by | 27 Mar, 2018

Investors expect the FTSE Russell (the British provider of stock market indices) to include Saudi Arabia in their emerging markets category later this week. This addition would trigger billions of Dollars to pour into the biggest stock market in the Middle East.

Saudi has made strong progress in opening up its capital markets, and is engaged in a period of social change too, under Crown Prince Mohammed Bin Salman.

According to a Bloomberg report, an announcement is expected from the index compiler tomorrow, and fund mangers looking to invest on behalf of clients will be watching closely. Investing in Saudi stocks could prove to be highly lucrative, especially as its economy begins to move away from its dependence on oil exports to generate wealth.

The optimism over the possible addition of Saudi stocks to the FTSE Russell has boosted Saudi stock markets this Tuesday, with the Saudi index rising 0.9% to its highest level since August 2015.

Yesterday the Crown Prince met with top figures from Wall Street on his first official US visit since becoming King Salman’s heir apparent. The reason? New York financiers are desperate to launch one of the world’s biggest IPO’s ever for oil firm Saudi Aramco. A successful IPO could give the company a total valuation of up to $2trn, making it the largest oil company in the world by capitalization.

With all of these events underway, it’s no wonder investors are scrambling at the chance to buy into the Kingdom.

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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