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Appointment of Crown Prince Pushes Stock Market above 7,300 Points | ASHARQ AL-AWSAT English Archive 2005 -2017
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An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016. REUTERS/Faisal Al Nasser

Riyadh- The Saudi stock market has achieved on Wednesday the highest daily gains in two years, in the first session following the appointment of prince Mohammed bin Salman as a crown prince.

The stock market succeeded on Tuesday in entering the watch-list of MSCI Emerging Market Index, in a qualitative step on the level of Saudi capital market while the index has jumped more than 5% amid remarkable growth in traded monetary liquidity.

In this matter, the Capital Markets Authority (CMA) affirmed on Wednesday that putting the domestic capital market on the MSCI index is the first step for the Saudi capital market towards joining the index fully.

Mohammed El Kuwaiz, vice chairman of the Capital Market Authority, explained that this step is a transitional leap in the domestic capital market and it goes in tandem with the strategic approach of the authority in a way that achieves the goals of the Saudi Vision 2030.

Kuwaiz added that this is an outcome of CMA exerted efforts that aim at developing the Saudi capital market and moving it to the global markets.

“CMA has worked with Tadawul and participants in the market to confirm the achievement of several initiatives including: issuing regulatory rules for foreign institutions to invest in listed financial securities and approving separation of the deposit center from Tadawul to make it an independent firm in addition to amending the duration for settling financial securities’ deals,” he continued.

In a related matter, the stock index surged 5.5 percent, its largest single-day rise since August 2015, to 7,335 points.