MSCI August 2019 QIR playbook: Eye two deletions across Qatar and the UAE; Expect USD6bn of inflows into Saudi Arabia
QIMD QD and AMANAT UH expected to exit in August, on low liquidity; QIIK QD and MERS QD are prospect beneficiaries of FOL increase by November. QIMD QD and AMANAT UH could exit the Qatar and UAE Small Cap indexes, as they fail the 5% quarterly liquidity threshold, potentially witnessing outflows of USD22mn and USD48.3mn, respectively. Qatar’s QIIK QD obtained approval to increase its FOL to 49% from 25%, increasing its FFMC and qualifying it to join Qatar’s Standard index by November, with a weight of 4.8%. MERS QD’s weight could increase to 5.6% from 2.8%, pending its FOL approval.
BUPA AB and SABB AB could benefit from CMA's decision on strategic shareholders limit; ARNB AB liquidity picking up, meaning possible inclusion by November. BUPA AB and SABB AB are the two main beneficiaries of the CMA’s decision, with BUPA AB’s inflows expected to increase by 50% to USD96mn (20 DTT), while SABB AB’s inflows should increase by 50%, with inflows of USD322mn (36 DTT). ARNB AB is up for a spot in Saudi’s Standard index, as it meets most requirements, only failing one quarter in terms of liquidity, making it a possible inclusion in the Nov-19 SAIR. Saudi Arabia is expected to receive USD6bn, as it completes its EM inclusion upgrade by Aug-19.
Egypt’s GTHE EY to exit IMI; HRHO EY and TMGH EY are the two main beneficiaries. MSCI has removed GTHE EY from Egypt’s Small Cap index, as the stock prepares to delist. The two main beneficiaries of this move are HRHO EY and TMGH EY, as their weights are expected to increase to 16.76% and 17.15%, respectively, from 14.60% and 14.93%. HRHO EY should see inflows worth USD1.71mn (3 DTT), while TMGH EY should record USD1.75mn (2 DTT) worth of inflows. The effective date for the deletion has yet to be announced by MSCI.
Kuwait’s weight to stand at c0.5% of EM index. Kuwait’s upgrade was postponed to Dec-19, due to MSCI requiring Kuwait Bourse to complete the introduction of the omnibus account structure and make the national investors number (NIN) available for both local and foreign investors before the November SAIR. The banking sector should accumulate cUSD2.1bn of the cUSD2.8mn total inflows, with NBK KK and KFH KK expected to witness inflows of USD1.58bn.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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