Three trading sessions, which followed the MSCI announcement on upgrading the Saudi shares market to the emerging global markets last week, have shown highly balanced performance by the Saudi stock market.
The market made strong gains during trading beginning of this week amid expectations that Saudi bourse joining the MSCI emerging market index would positively impact trading in the coming period.
The decision is expected to expand liquidity base in the Saudi bourse and allow the listed firms to compete on developing operational performance and achieving qualitative gains that give an added value to investors.
In this context, the Saudi shares index closed Monday’s trading at 8,342 points amid trading total value of around SAR3.23 billion (USD861.1 million).
HSBC Saudi Arabia said that after Tadawul, as the exchange is known, was granted inclusion by MSCI into the index provider's Emerging Markets benchmark, the stock market would attract more investors.
Majed Najm, CEO, HSBC Saudi Arabia said he was delighted with this decision that reflects the efforts being exerted by the Capital Market Authority of Saudi Arabia and Tadawul.
The MSCI inclusion would lure investors to the Saudi market, he added.