MSCI adds Saudi Arabia, Argentina indices to Emerging Markets Index

[NEW YORK] MSCI Inc said on Monday it would include the MSCI Saudi Arabia and MSCI Argentina indices to its closely watched and widely duplicated emerging-markets index.

MSCI said 30 Saudi Arabian securities would be added, representing an aggregate weight of 1.42 per cent in the MSCI Emerging Markets Index, while eight Argentinian securities would be added at an aggregate weight of 0.26 per cent in the MSCI Emerging Markets Index.

MSCI said it would increase the weight of China A shares in the emerging markets index. Twenty-six China A shares - 18 of which are ChiNext stocks - will be added to the MSCI China Index and the inclusion factor for 238 existing constituents will be increased from 0.05 to 0.10.

China A shares will have an aggregate weight of 5.25 per cent and 1.76 per cent in the MSCI China and MSCI Emerging Markets Indexes, respectively.

The weight increase of China A shares in the MSCI Emerging Markets Indexes will be implemented through a three-step process, MSCI said. The FIF-adjusted market capitalization of China A shares will be further increased to 0.15 as part of the August 2019 Quarterly Index Review and then to 0.20, together with the inclusion of Mid Cap China A shares, in the final step as part of the November 2019 Semi-Annual Index Review.

REUTERS