FTSE Russell splits fifth phase of Tadawul inclusion into 2 tranches

17/03/2020 Argaam Special

 

FTSE Russell announced that it will divide the fifth and final phase of Tadawul’s inclusion in its Emerging Market Index into 2 tranches, scheduled in March and June this year, according to a statement on Monday.

 

The statement said that 25% of the fifth phase will be included in March, while the remaining 75% will be implemented in conjunction with the quarterly review in June.

 

The new classification aims at reducing risks for market constituents, as the new split also includes Chinese ‘A’ stocks.

 

According to data compiled by Argaam, the first phase was included on March 18, 2019, the second phase on May 1, and the third phase on June 24. The fourth phase was included on Sept. 23, 2019.

 

Saudi Arabia is estimated to have an index weight of 0.25% in the FTSE Global Equity Index Series, and 2.7% in the FTSE Emerging All Cap Index.

 

Stages of Including Tadawul into FTSE Emerging Market Index

Tranches

1st tranche

2nd tranche

3rd tranche

4th tranche

5th tranche

Review date

March 18, 2019

May 1, 2019

June 24, 2019

Sept. 23, 2019

March 23, 2020

June 2020

Tranche size

10 %

15 %

25 %

25 %

25 %

25%

75%

Total

10 %

25 %

50 %

75 %

81.25 %

100%

Non-active investments*

1.8

2.7

4.5

4.5

1.12

3.38

*SAR bln

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