Saudi Aramco up for third session, but valuation remains below $2 trillion
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Saudi Aramco up for third session, but valuation remains below $2 trillion

Saudi Aramco up for third session, but valuation remains below $2 trillion

MSCI will add Aramco to its benchmarks using the closing price of December 17

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Saudi Aramco shares advanced for a third session on Sunday — though the market valuation remained below $2 trillion — with investors focusing on the energy company’s inclusion in major international equity indexes this week.

The stock climbed 1.6 per cent in Riyadh, extending gains since it started trading on Wednesday to 17 per cent. The main Saudi index also advanced, along with most peers in the Middle East, as they caught up with global markets after the U.S. and China agreed on a phase-one trade deal last week.

MSCI Inc., which compiles the most popular emerging-market equities index, will add Aramco to its benchmarks using the closing price of Dec. 17. FTSE Russell will follow suit using the price of Dec. 19.

Aramco’s addition will probably trigger about $1.16bn of flows into the stock, according to Arqaam Capital. EFG-Hermes foresees passive inflows of as much as $1.24bn.


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