Shares in the Tadawul, the Saudi stock market, surged 2% on Tuesday with much of the gains happening before the session closed as MSCI Inc. prepares to include the Kingdom into its developing country benchmark, according to a report in Bloomberg.
MSCI Inc., which is a Global provider of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools, will include the Tadawul using Tuesday’s closing prices. The addition will take place in two stages, with the first phase following today’s close, the second in August.
According to Bloomberg, The Tadawul All Share Index rose 2% on the day, after fluctuating throughout the session, with banks contributing the most to the increase. The Tadawul trimmed this month’s losses to 8%. Today’s gains were the largest in nearly 6 months.
The planned inclusion into the MSCI index has caused Saudi stocks to soar in 2019, outperforming other developing countries after falling off in the second and third quarters in 2018.