Saudi Arabia gains on MSCI decision, Dubai stocks rise

Saudi Arabian shares gained yesterday, reflecting largely positive sentiment across the Gulf, after index provider MSCI announced overnight it would add the kingdom’s stock market to its emerging markets benchmark.

The addition was expected and Saudi Capital Market Authority Chairman Mohammed bin Abdullah Elkuwaiz told reporters it could help attract $40 billion in foreign inflows from funds.

But Kuwait’s index closed down after the MSCI also said that it would include it in its classification review next for a potential move from frontier to emerging markets.

Thursday was the last day of trading in the Middle East ahead of a meeting of oil producers in Vienna where Saudi Arabia is trying to convince fellow OPEC members of the need to raise oil output, according to sources familiar with the talks.

Saudi Arabia’s index gained 0.5 per cent, helped by shares in insurance firms and financial institutions.