TASI falls 2% post-MSCI inclusion; blue chips decline

Saudi Arabia's stock market dropped over 2 percent by Wednesday noon, a day after inclusion in the MSCI Emerging Market index.

The benchmark Tadawul All Share Index (TASI) edged down 175 points to 8,375 points in the first two hours of trading.

Traded value reached SAR 1.4 billion with the advance-decline ratio at 71:90.

Global index provider MSCI Inc. added 30 Saudi Arabian securities, representing an aggregate weight of 1.42 percent, in the MSCI EM index as of yesterday’s close. TASI jumped 2 percent in the last session, as turnover reached SAR 27 billion.

“It was close to what was expected in terms of inflows but now the correction should begin especially that it happens to be before Eid and the emergency summit which is to be held in Saudi,” Issam Kassabieh, a senior financial analyst at Menacorp, told Argaam.

“The Saudi index does have the ability to go higher though as more indicators of listings come up,” he added.

Blue chip SABIC was down 1.6 percent to SAR 108.80, while banking major Al Rajhi shed 1.9 percent to SAR 67.60.

Mining giant Maaden shed 4.5 percent, while petchem major Saudi Kayan shed 4.3 percent.

SFICO was the top gainer, rising 5.7 percent to SAR 52.30.

Write to Parag Deulgaonkar at parag.d@argaamplus.com