Saudi Aramco stock dips as it gets added to MSCI, Tadawul indices

Aramco gets added to the MSCI and Tadawul indices. (File photo: Reuters)

Saudi Aramco’s shares opened lower at 37.50 riyals on the Saudi Stock Exchange (Tadawul) following its inclusion in the MSCI, Tadawul indices on Wednesday.

The stock was down 2.8 percent at 36.70 riyals at its close, nearly 15 percent above its original IPO price.

Analysts had previously told Al Arabiya English that Aramco’s inclusion on global index provider MSCI would attract around $2.4 billion in both passive and active inflows.

The Tadawul All Share Index (TASI) and the MSCI Index were up 1 percent each.

Separately, Saudi Aramco said that Goldman Sachs may stabilize an offer of 3 billion of the oil giant's shares.

The investment bank was named Aramco’s stabilizing manager for its initial public offering earlier this month.

A stabilizing bid is a purchase of stock by underwriters to support the price of a stock immediately after its listing.

The first stabilization period for Aramco shares is expected to end no later than January 9 2020, the company said in a statement.
 

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Last Update: 12:26 KSA 15:26 - GMT 12:26
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