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Launching MT30 of 30 Largest Securities

Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)
Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)
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Launching MT30 of 30 Largest Securities

Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)
Top index provider MSCI has teamed up with the Saudi Stock Exchange, above, to launch the tradeable MSCI Tadawul 30 Index. (Getty Images)

MSCI Inc., a leading provider of indexes and portfolio construction and risk management tools and services for global investors, and the Saudi Stock Exchange (Tadawul), the largest stock exchange in the Gulf Cooperation Council (GCC) region in terms of market capitalization and turnover, announced the launch of the MSCI Tadawul 30 Index (MT30), a tradeable index.

MT30 initially comprises the 30 largest securities listed on Saudi Arabian Equity Market, based on free float market capitalization and screened for liquidity and international investability.

The index will be re-balanced four times a year, and the number of securities may vary within a range of 25-35 securities to reflect changes in the underlying market. Individual securities are capped at a maximum 15 percent weighting in the Index.

The index will provide investors with a useful benchmark of the largest liquid companies in Saudi Arabia and serve as the basis for the development of an index futures contract listed on Tadawul and can be licensed for other index linked financial instruments, including mutual funds, derivatives, and exchange-traded products.

Plans for the tradeable index were announced by MSCI and Tadawul in September 2018. MSCI announced the classification of Saudi Arabia to an Emerging Market in its annual global market classification review in June 2018. Saudi Arabia will enter the MSCI Emerging Markets Index in two phases this year, with the first phase set to coincide with MSCI’s May 2019 Semi-Annual Index Review in June.

Robert Ansari, Head of the Middle East at MSCI, comments: “We have seen increasing demand by institutional investors for tradeable indexes that can serve as the basis for liquid instruments to access equity markets globally. The MSCI Tadawul 30 Index (MT30) has been designed with tradability, investability and capping criteria to be able to serve as the basis for index futures and other financial products including derivatives and exchange-traded products.”

Khalid Al Hussan, Chief Executive Officer of Tadawul, adds, “Today’s launch of the MSCI Tadawul 30 Index (MT30) is a significant step forward in facilitating the creation of a derivatives market for Saudi Arabia and advancement of the Vision 2030 Financial Sector Development Program.”

Hussan added that, “With additional derivatives launches in the pipeline, including the introduction of an associated exchange-traded index futures contract, we expect to make significant strides this year in further enhancing market efficiency and creating new opportunities for investors to diversify risk and broaden exposure to the Saudi market, which continues to be the largest and most liquid in the region.”

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Lebanese President Acknowledges ‘Slow Progress’ in Talks with Hezbollah on Disarmament

Aoun receives the key to the area of Sin al-Fil, where he lived before his election. (Lebanese Presidency)
Aoun receives the key to the area of Sin al-Fil, where he lived before his election. (Lebanese Presidency)
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Lebanese President Acknowledges ‘Slow Progress’ in Talks with Hezbollah on Disarmament

Aoun receives the key to the area of Sin al-Fil, where he lived before his election. (Lebanese Presidency)
Aoun receives the key to the area of Sin al-Fil, where he lived before his election. (Lebanese Presidency)

Lebanese President Joseph Aoun acknowledged on Friday that negotiations with Hezbollah over its weapons are ongoing, though progressing slowly.

Speaking amid heightened tensions along the southern border with Israel, Aoun emphasized that dialogue is being conducted directly with Hezbollah, not through a formal security committee, and expressed cautious optimism over a gradual breakthrough.

“There is some responsiveness to the ideas we’re discussing, even if things are moving at a slow pace,” said Aoun, stressing that neither party desires war, which would carry severe consequences for all sides.

His remarks come as Hezbollah issued its first public response to the recent visit by US envoy Tom Barrack, rejecting the American proposal focused on centralizing arms under the Lebanese state.

Hezbollah insisted it is only concerned with implementing UN Resolution 1701, which calls for Israel’s withdrawal from Lebanese territory and a cessation of hostilities.

Aoun reiterated Lebanon’s demand for Israel to adhere to the ceasefire agreement and withdraw from the remaining five occupied hills in the south, noting that full army deployment remains hindered in areas still under Israeli control.

During his visit to Beirut this week, Barrack pushed for a “monopoly of arms” by the Lebanese state, declaring that the US will only support Lebanon if its government commits to ensuring that only official forces carry weapons.

In a statement, he reinforced that Hezbollah, in its entirety, is viewed by Washington as a foreign terrorist organization, with no distinction between its political and military wings.

He added that the responsibility now lies with Lebanon’s political leadership and army to seize this opportunity and build a future free of Hezbollah’s grip.

Hezbollah MP Ihab Hamadeh dismissed the American initiative, affirming that the group is aligned with the stance of parliament and ally Speaker Nabih Berri and will only engage within the framework of Resolution 1701.

He acknowledged a general agreement on the principle of state monopoly over arms, but argued that this must be accompanied by a comprehensive national defense strategy, especially in light of ongoing Israeli attacks.

Meanwhile, Israeli airstrikes have intensified, targeting South Lebanon throughout the week. On Friday, an Israeli drone strike killed a Hezbollah member in Bint Jbeil, while other raids reportedly hit weapons depots and rocket launch sites. Tensions escalated further when an Israeli soldier shot a Lebanese civilian near the border.

In response to repeated attacks, residents of the border town Aita al-Shaab issued a strongly worded statement condemning the government’s inaction and warning that they may resort to self-defense.

“Security is not a luxury; it is our right,” the statement read.