Jan. 12 (Bloomberg) -- Saudi Arabia’s stock market may gain frontier market status at MSCI Inc. “quite quickly” if it opens up to foreign investors in the first quarter, HSBC Holdings PLC said.
An inclusion at the index provider may also pave the way for an upgrade to emerging market status, HSBC said in an e- mailed report to clients. “First, it should allow Saudi to tap the wide international pool of emerging market liquidity,” the note said. “Second, it has the potential to stimulate much more efficient behaviour from Saudi equities, allowing them to better reflect market fundamentals.”
Saudi Arabia is the bank’s top pick in the Persian Gulf region, HSBC said.
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