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TASI to hit 9,400 pts on MSCI inclusion – Credit Suisse

TASI to hit 9,400 pts on MSCI inclusion – Credit Suisse
“The MSCI first phase is widely expected to trigger around $6 billion worth of influx.”

Riyadh – Mubasher: The Saudi Stock Exchange’s (Tadawul) benchmark will grow on the back of announcing its inclusion into the MSCI Emerging Markets Index as of June, head of Credit Suisse’s Middle East research told the kingdom-based TV channel Al Arabiya in an interview.

The Tadawul All Share Index (TASI) might reach a range between 9,000 and 9,400 points, bouncing back its peak reached in 2019, Fahd Iqbal said.

“We have previously expected the Saudi market to peak just ahead or on the day of inclusion itself, which is traditionally what we’ve seen in the past 25 years’ worth of MSCI inclusions..The performance of Saudi Arabia would be more like an inverted ‘U’ with the peak somewhere around the May-end when the MSCI inclusion occurs,” he added.

Iqbal also highlighted the geopolitical hazards which lead to complications with the risk environment worldwide and a very sharp correction trend in Saudi equities over the previous period.

“The MSCI first phase is widely expected to trigger around $6 billion worth of influx. And as we’ve seen with past upgrades, that inflow momentum tends to last a little beyond the actual day of inclusion itself,” Iqbal commented.

In mid-May, MSCI Inc. added the MSCI Saudi Arabia index to its emerging-markets index (EM Index), according to MSCI’s semi-annual index review.

The US-based index compiler said the stocks of 30 Saudi firms will be added, accounting for an aggregate weight of 1.42% in the MSCI Emerging Markets Index