Wednesday, Jun 20, 2012
0656 GMT [Zawya Dow Jones]--Daman Investments says if the UAE is upgraded by MSCI to emerging market status later Wednesday then its weight would be 0.147% in the index, equating to about $420 million of passive money flowing into the UAE. "Given the average daily value traded in the UAE markets during the month of April AED352.6 Million, or $96 million per day, this will equate to 4.4 days of trading turnover," it adds. Therefore, a potential reweighting would be at best a short term catalyst but not enough to send the UAE on a sustained positive upward trajectory, says Daman. Notes MSCI's main issue previously has been feedback on DVP settlement. "The main concern was that of trades done in error which could be sold by the broker without the owner's consent, which as of yet has not been resolved," it says.
(tim.falconer@dowjones.com)
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(END) Dow Jones Newswires
20-06-12 0656GMT
