MSCI, whose equity indexes are tracked by investors with about US$7 trillion in assets, has elevated UAE and Qatar to ’emerging-market’ status.
"The reclassifications of the MSCI Qatar and MSCI UAE Indices will coincide with the May 2014 Semi Annual Index Review while the reclassifications of the MSCI Greece and MSCI Morocco Indices will coincide with the November 2013 Semi Annual Index Review," MSCI said in its yearly market classification report.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
When the change takes effect, MSCI-based funds are expected to add stocks from those markets to their portfolios for the first time. The UAE will have a 0.40% weight in the MSCI Emerging Markets Index and Qatar, 0.45%.
According to market analysts, upgrades might draw a fresh US$500 million each to the UAE and Qatar.
In response to the news, Qatar’s benchmark QE Index advanced to the highest level in almost five years, while Abu Dhabi’s benchmark advanced 2.7%, posting its biggest one-day gain since December 2009.
MSCI also initiating the review of China A-shares for potential inclusion in the MSCI Emerging Market Index.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
