DUBAI, June 21 (Xinhua) -- Following index developer MSCI's upgrade of Saudi Arabia, equity indexes in Dubai and Abu Dhabi ended the trading day mixed, while the Saudi Stock Exchange posted moderate gains on Thursday.
The MSCI announced late Wednesday that the upgrade of Saudi Arabia to "emerging market" from "frontier market" will become effective in June 2019. As a direct reaction, the Saudi stock market Tadawul in Riyadh closed the Islamic trading week 0.49 percent higher at 8,206.40.
The Dubai Financial Market General Index gained 0.19 percent, while sister market ADX in Abu Dhabi, the UAE capital, fell for the fourth session straight, ending down by 0.33 percent.
"It is highly doubtful that the MSCI's announcement will have a direct spill-over into the local UAE market," said Jameel Ahmad, Global Head of Currency Strategy and Market Research at global financial services firm FXTM, in a statement by e-mail to Xinhua.
"However, the news .. might increase foreign sentiment towards investing in the GCC (Gulf Cooperation Council)," he added.
The GCC comprises Saudi Arabia, the UAE, Kuwait, Bahrain, Qatar and Oman. The UAE and Qatar were upgraded to "emerging markets" back in May 2014.
"Inclusion into the MSCI index holds the potential to drive high levels of foreign investment into the stock market. Therefore it will be seen as positive news for the Saudi stock market," said Ahmad. Enditem
