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ActionsMSCI Tadawul 30 Index (MT30)
"Here you can learn more about the MSCI Tadawul 30 Index. The Saudi Exchange and MSCI Inc., a global leader in the provision of indices services, have partnered to develop a joint tradable index that can be used as a base for financial products including Derivatives and ETFs.
The index is called MSCI Tadawul 30 Index (MT30). The MSCI Tadawul 30 (MT30) Index represents the performance of the 30 largest & most liquid securities listed on the Saudi equity market. The weighting of securities within the index is capped at 15% to minimize the dominance of particularly large securities."
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Contact UsFrequently Asked Questions
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WHAT IS THE MSCI TADAWUL 30 INDEX (MT30)?
The MSCI TADAWUL 30 Index (MT30) is a joint tradeable index co-developed with MSCI Inc. to serve as a basis for derivatives and exchange-traded financial products. The MSCI TADAWUL 30 Index (MT30) is designed to reflect the performance of approximately the 30 largest and most liquid stocks listed on the Saudi Exchange.
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WHO IS MSCI?
MSCI Inc. is a Global provider of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools. For more than 40 years, MSCI’s research based indexes and analytics have helped the world’s leading investors build and manage better portfolios. More than 14 Trillion USD in equity assets are estimated to be benchmarked to MSCI Indices, and more than 90 of the top 100 global investment managers are clients of MSCI.
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WHAT DOES “TRADEABLE” INDEX MEAN?
Tradeable does not necessarily means that the index will be traded, it means that the index constituents are highly liquid, with a significant size available to be traded on the exchange.
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WHO ARE THE MAIN POTENTIAL USERS FOR THE MSCI TADAWUL 30 INDEX (MT30)?
The main users are international and domestic institutional investors, analysts, researchers, market commentators.
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WHAT ARE MAIN USES FOR THE MSCI TADAWUL 30 INDEX (MT30)?
Primarily it is used to serve as the basis of Financial Product development such as index derivatives and exchange traded funds (ETFs) and/or as an alternative benchmark for the Saudi Equity market.
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DOES MSCI TADAWUL 30 INDEX (MT30) REPLACE TASI OR ANY OTHER EXITING MARKET INDICES?
No, MSCI TADAWUL 30 Index (MT30) is not a replacement of TASI or any other existing market indices. The index complements these offerings, and provides investors with more information on the most liquid stocks.
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WHERE IS THE MSCI TADAWUL 30 INDEX (MT30) DISPLAYED?
The MSCI TADAWUL 30 Index (MT30) will be published on Saudi Exchange’s website, and made available via the services of Authorized Information Providers.
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HOW ARE THE SECURITIES OF THE MSCI TADAWUL 30 INDEX (MT30) BE SELECTED?
The MSCI TADAWUL 30 Index (MT30) is derived from the MSCI Saudi Arabia IMI constituents universe (Parent Index). This Parent index covers approximately 99% of the free float-adjusted market capitalization of the Saudi Equity market.
In order to be eligible for MSCI TADAWUL 30 Index (MT30), liquidity and invisibility criteria below are applied on this universe:
Frequency of Trading:
The number of days a security traded during a period divided by the total number of market trading days within this period;
Traded Value Ratio:
Annualized Traded Value of a security relative to its Free Float‐Adjusted Market Capitalization;
Foreign Ownership Limit:
Securities which do not allow foreign investments will not be eligible for MSCI TADAWUL 30 Index (MT30). Moreover, the proportion of shares still available to foreign investors relative to the maximum allowed will be considered in the index inclusion and in determining the weight of a security.
From the securities that passed the eligibility criteria above, top 30 in terms of size (Free Float market capitalization) are selected.
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ARE THE SECURITIES WEIGHT IN THE MSCI TADAWUL 30 INDEX (MT30) BE CAPPED (MAXIMUM LIMIT)?
Yes, securities’ weight are capped at 15% Capping Threshold to minimize dominance of large securities in the Index (to avoid concentration risk).