Aramco share slips 3% on Tadawul, MSCI inclusion day


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Aramco share slips 3% on Tadawul, MSCI inclusion day

On Wednesday, the 18th of December 2019, share prices of the Kingdom of Saudi Arabia’s state-owned oil giant, Aramco, which claimed to be the world’s most profitable company but lacked concrete evidence, nosedived just a notch shy of 3 per cent at its inclusion day in the Saudi Tadawul index and MSCI’s Emerging Market Index, extending its two-day long losing streak after shedding off 0.66 per cent yesterday (December 17th), pointing towards further glooms ahead of its inclusion into the FTSE index on Thursday (December 18th) as investors in particular from the Gulf region appeared to be pocketing profits following its record-setting IPO on December 11th that raised a stark sum of $25.6 billion, surpassing Alibaba Group Holdings’ all-time high $25 billion IPO on record in NYSE back in the 2014s.

In point of fact, inclusion in to a benchmark index usually attracts foreign inflows from passive investors, however, Saudi Aramco’s whopping target of a $2 trillion in market valuation that broadly depended upon global crude oil price alongside a promised dividend of $75 billion next year which would require US crude price futures’ to stay above $60 per barrel, had already casted aside a number of potential investment funds across the globe, while following Wednesday’s (December 18th) Aramco shares’ wobbling trickle of 2.8 per cent to 36.7 riyals per share, analysts were quoted saying that a full-fledged debate over Saudi Aramco’s precise market cap might fuel up further sell-off of Aramco stocks in its FTSE index inclusion day.