Dubai: Morgan Stanley Capital International Inc (MSCI) increased its weight of UAE in the emerging market index marginally, Arqaam Capital said in a note.
Arabtec’s Limited Investability Factor has been removed, increasing the UAE’s weight in the Emerging Market index by 2 basis points to 0.67 per cent. FGB’s Foreign Inclusion Factor (FIF) has not been increased to 25 per cent from 20 per cent, it said.
“The MSCI review of UAE stocks and Qatar saw no real changes in terms of inclusion or exclusions. The investiblity factor was adjusted in Arabtec, so we have a higher weightage of Arabtec on MSCI, said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
Egypt has two potential candidates for an upgrade to the Standard index in May as EFG and Juhayna have been lurking around the minimum cut-off points, but have not met the minimum requirements yet, Arqaam Capital said in a note.
MSCI, whose equity indexes are tracked by investors with about $7 trillion in assets, promoted the two countries from frontier-market status to emerging markets from May 2014.
