Tadawul extends closing auction, trade amid Aramco’s inclusion on MSCI

The MSCI, a global provider of equity, fixed income, hedge fund stock market indexes, is set to include Saudi Aramco in its indexes today, Dec. 17, 2019. The inclusion will come into effect tomorrow, Dec. 18.

Meanwhile, the Saudi Stock Exchange (Tadawul) will extend the closing auction and trade at last session to 20 minutes instead of 10 minutes, ahead of Saudi Aramco’s entry in MSCI Emerging Markets Index.

Accordingly, the closing auction will start from 3:00 p.m. to 3:20 p.m., and the trade at last session will follow from 3:20 p.m. until 3:40 p.m.

Sale and buy transactions on Aramco will be executed in the closing auction today, so that investors are able to set the stock price.

Aramco’s inclusion will be completed in one phase. The giant oil producer’s weight on MSCI EM index and MSCI Saudi Arabia Index is estimated at 0.16% and 6.03%, respectively.

Tadawul completed the second and last phase of MSCI in August. The Saudi securities weight on the index stood at 2.8%.

Upon the inclusion of Saudi Aramco, the MSCI estimated the number of stocks that would gain that emerging market status would reach 32.