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Global index builder Morgan Stanley Capital International (better known as MSCI) has published its latest rebalancing of key GCC indexes, adding a handful of Saudi issuers and removing others. The changes will take place after the market close on Thursday, 29 February.
Uh, Enterprise, what are MSCI indexes? MSCI indexes are widely used benchmarks for global equity markets and stakeholders including institutional investors, portfolio managers, and financial advisors. Investors use the indexes as gauges of market performance, as benchmarks against which to compare other stocks or markets, and to build index tracking funds, among other purposes.
MSCI GCC Countries Standard indexes (pdf): Ades Holding was added, while Petro Rabigh and Tasnee were removed.
MSCI GCC Countries Small Cap index (pdf): Lumi Rental, Saudi Re-ins., Saudi Steel Pipes and Tasnee were added. Saudi Fisheries and Riyadh Cables were removed.
MSCI GCC countries Domestic Small Cap Indexes (pdf): Saudi Steel Pipes, Tasnee, Lumi Rental, and Saudi Re-ins. were added, while Amlak Finance and Riyadh Cables were removed.
Why it matters: While getting added to the MSCI indexes attracts investor attention to the company’s stocks, being excluded isn’t necessarily a sign for concern given that it could be based on not meeting specific index criteria, including a change to the company’s structure, amongst other things.
