FTSE Russell splits fifth phase of Tadawul inclusion into 2 tranches

FTSE Russell announced that it will divide the fifth and final phase of Tadawul’s inclusion in its Emerging Market Index into 2 tranches, scheduled in March and June this year, according to a statement on Monday.

The statement said that 25% of the fifth phase will be included in March, while the remaining 75% will be implemented in conjunction with the quarterly review in June.

The new classification aims at reducing risks for market constituents, as the new split also includes Chinese ‘A’ stocks.

According to data compiled by Argaam, the first phase was included on March 18, 2019, the second phase on May 1, and the third phase on June 24. The fourth phase was included on Sept. 23, 2019.

Saudi Arabia is estimated to have an index weight of 0.25% in the FTSE Global Equity Index Series, and 2.7% in the FTSE Emerging All Cap Index.

*SAR bln