Aramco shares plunged ahead of MSCI, FTSE inclusion


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Aramco shares plunged ahead of MSCI, FTSE inclusion

On Tuesday, the 17th of December 2019, Riyadh Stock Exchange-listed shares of Saudi oil giant, Aramco, the world’s most profitable company on an unaudited basis which had scored the largest IPO global financial markets had ever witnessed on December 11th, wrapped up the day down by 0.66 per cent at $10.07 or 37.75 Saudi Riyals per share ahead of their entrance into the MSCI’s index of emerging market, snapping a three-day-long streak of gains.

In point of fact, Saudi Aramco would be included in to the MSCI’s Emerging market index on Wednesday (December 18th) based on Tuesday’s (December 17th) closing price that surged the oil giant’s market valuation slightly above $2 trillion, a figure long-yearned by the Saudi Crown Prince Mohammed bin Salman.

Apart from its inclusion into the MSCI Emerging Market Index, Aramco shares would also start off their trading on Tadawul index from Wednesday (December 18th) and on the FTSE’s Global Benchmark index from Thursday (December 19th).

Meanwhile, investors appeared to be biding their times on Tuesday’s Riyadh stock exchange, while a number of vigilant sell-offs in context of uncertainties over Aramco’s first trading day at MSCI emerging market index had halted a three-day long rally of Aramco shares as beforementioned.

Concomitantly, following Tuesday’s (December 17th) market wrap-up, Dubai based investment fund Arqaam Capital wrote in a client note that the Saudi Aramco would likely witness a total of $710 million as passive inflows from its MSCI inclusion, while the FTSE’s inclusion would amount to a lump-sum of $400 million.