UAE's Etisalat, Qatar's Nakilat to be included in MSCI emerging markets index

Investment bank EFG Hermes estimates telco would attract about $547m of passive fund inflows
UAE's Etisalat, Qatar's Nakilat to be included in MSCI emerging markets index
By Reuters
Sun 15 Nov 2015 09:47 AM

Equity index compiler MSCI will add United Arab Emirates telecommunications operator Etisalat and Qatar Gas Transport Co (Nakilat) to its emerging markets index, a statement on MSCI's website said.

MSCI also said it would delete Qatari drilling rig provider Gulf International Services from the emerging markets index, while adding Bahrain's Ahli United Bank to its frontier markets index. The changes will take effect at the end of this month.

Etisalat cleared the way for its inclusion earlier this year by permitting institutional and foreign investment in its shares, although foreigners will still not have voting rights.

Investment bank EFG Hermes estimated Etisalat would attract about $547 million of passive fund inflows because of the inclusion. The stock, which has gained 29 percent since June because of hopes for index inclusion, has a market capitalisation of $36.5 billion.

Nakilat is likely to attract $135 million, while $56 million is expected to flow out of Gulf International Services, it said.

However, EFG calculated that MSCI's decision to add overseas-listed Chinese companies to the emerging market index at the same time would siphon $173 million away from Qatar, the UAE and Egypt.

Of that total, $92 million will exit from Qatar followed by $64 million from the UAE and $17 million from Egypt, it said.

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