Aramco’s weight on TASI won’t exceed ceiling: Tadawul CEO

Khalid Al-Hussan, CEO of the Saud Stock Exchange (Tadawul), ruled out that Saudi Aramco’s weight on Tadawul All Share Index (TASI) would exceed the maximum limit set at 15%.

“A ceiling was set for corporate weights to alleviate potential impacts on the index,” Al-Hussan explained during the stock market listing forum, launched by Riyadh Chamber today.

The same mechanism was applied to Nomu Parallel Market, with the maximum weight set at 20%, he stated.

Elsewhere, the top official said Saudi Arabia is expected to launch the financial derivatives market in Q1 2020, adding the exact date will be announced to market participants by the end of this year.

The Capital Market Authority (CMA), the Saudi market regulator, published earlier this month the draft regulations for the index, seeking proposals from competent parties, Argaam reported.

Under the new amendments, the maximum weight of Tadawul-listed companies will be set at 15%, effective from Dec. 29, 2019, based on the Q4 2019 indices maintenance.

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