Al Rajhi Capital says Americana, Luberef inclusion likely in MSCI index

Tadawul trading screen

Al Rajhi Capital said that Americana Restaurants International PLC (Americana) and Saudi Aramco Base Oil Co. (Luberef) have a high chance of inclusion in the semi-annual review of MSCI Saudi Arabia Index next May.

Both companies' market capitalization is far higher than the estimated cut-off of SAR 9.8 billion, reaching SAR 33 billion for Americana and SAR 20 billion for Luberef.

Assuming the current and proforma weight of Saudi Arabia in the MSCI EM and MSCI ACWI Index remain unchanged, the brokerage estimates Luberef to witness inflows of $78 million in two to three days.

The brokerage believes The Company for Cooperative Insurance (Tawuniya) (market capitalization of SAR 12.6 billion) and Abdullah Al Othaim Markets Co. (SAR 12.3 billion) have a chance of being upgraded from the current small cap index to the standard index because their market capitalization is above the cut-off of the standard index.

Al Rajhi Capital expects Tawuniya and Al Othaim Markets to witness inflows of $87 million within nine to 12 days and $77 million within 22 to 26 days, respectively.

In terms of exclusion, National Industrialization Co. (Tasnee) is a potential candidate to be removed from the index since its market capitalization at SAR 8.9 billion has fallen below the reference point, the brokerage added.