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A review of the MSCI emerging markets index in August could see India overtake Taiwan and become the second-heaviest-weighted market in the index, right behind China, the Financial Times writes.
What’s happening? Rising share prices, strong corporate earnings, and fresh paper in the market “have pushed India to just under a fifth of the MSCI emerging markets index while China has fallen to a quarter, from more than 40 per cent in 2020,” the FT writes.
More weight to India would confirm fund managers’ current bias: “The two consensus trades in emerging markets today are ‘long India, short China’,” Varun Laijawalla, an EM portfolio manager at asset manager NinetyOne, said.“The valuation spread between these two markets is as wide as it’s ever been.”
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MARKETS THIS MORNING-
It’s red as far as the eye can see in Asia this morning as shares there tracked yesterday’s big dip on Wall Street, where jitters about the commercial viability of AI saw the Nasdaq 100 turn in its worst single-day performance since 2022. The Nikkei was down more than 3%, the Kospi off almost 2%, and the ASX 200 had lost nearly 1% as of dispatch time this morning.
Chinese shares are also taking a hit: The Hong Kong’s Hang Seng is down 0.5% and the Shanghai Composite has dipped 0.4%.
Futures suggest that European equities will also face selling pressure at the opening bell later this morning, though perhaps less sharp than in Asia and the US (Europe isn’t exactly a hotbed of tech innovation). Wall Street stock futures gained slightly in overnight trading, implying that traders may think yesterday’s selldown was a bit too sharp.
What to watch for: Plenty of Big Tech earnings next week will provide fresh catalysts, as we note in this morning’s Big Story Abroad, above.
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TASI |
12,101 |
0.0% (YTD: +1.1%) |
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MSCI Tadawul 30 |
1,513 |
0.0% (YTD: -2.4%) |
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NomuC |
26,337 |
+0.7% (YTD: +7.4%) |
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USD : SAR (SAMA) |
USD 3.75 Sell |
USD 3.75 Buy |
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Interest rates |
6.0% repo |
5.5% reverse repo |
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EGX30 |
29,091 |
-0.4% (YTD: +16.9%) |
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ADX |
9,263 |
+0.3% (YTD: -3.3%) |
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DFM |
4,229 |
+0.3% (YTD: +4.2%) |
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S&P 500 |
5,427 |
-2.3% (YTD: +13.8%) |
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FTSE 100 |
8,154 |
-0.2% (YTD: +5.4%) |
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Euro Stoxx 50 |
4,862 |
-1.1% (YTD: +7.5%) |
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Brent crude |
81.35 |
-0.4% |
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Natural gas (Nymex) |
2.12 |
+0.3 |
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Gold |
USD 2,447 |
-0.3% |
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BTC |
USD 64,414 |
-1.9% (YTD: +47.5%) |
THE CLOSING BELL: TADAWUL-
The TASI was flat yesterday on turnover of SAR 6 bn. The index is up 1.1% YTD.
In the green: Kingdom Holding (+8.5%), MedGulf (+6.7%) and Amlak (+5.4%).
In the red: Al Arabia (-3.1%), Fakeeh Care (-3.0%) and Modern Mills (-2.6%).
THE CLOSING BELL: NOMU-
The NomuC rose 0.7% yesterday on turnover of SAR 69.4 mn. The index is up 7.4% YTD.
In the green: Clean Life (+12.9%), Naba Alsaha (+10.0%) and Qomel (+5.8%).
In the red: Al Hasoob (-5.8%), Marble Design (-5.6%) and Al Rashid Industrial (-4.9%)
CORPORATE ACTIONS-
Al Sagr Cooperative Ins. has raised nearly SAR 32 mn from its rump shares offering, which saw an oversubscription of 608.7%, it said in a filing to Tadawul. The shares were offered at an average price of SAR 19.6 a piece.
BACKGROUND: The company’s rights issue for a capital hike — which sought to more than double the company’s capital to SAR 300 mn — wrapped up last week and was 89.8% subscribed. Al Sagr lined up shareholders’ approval for the move in June to meet the minimum capital requirement for listed ins. companies.
