MANAMA: Tadawul announces that the new industry classification shall be effective starting from Sunday January 8, 2017. This step is in line with Tadawul’s strategy to support the development of the Saudi capital market, and aims to enhance transparency and provide more reliable information on sector performance.
This was in reference to the announcement published by the Saudi Stock Exchange (Tadawul) last month regarding reclassifying the Equity market sectors in accordance with Global Industry Classification Standard (GICS).
Tadawul has already communicated to all listed companies the new sectors to which they belong according to GICS. The companies have also been briefed on the classification methodology, including the company’s business activity and revenue as the two main factors of classification. Moreover, the new industry classification consists of 20 industry groups representing the second level of GICS.
The calculation of New Sector Indices will start on January 8, 2017, at 5,000 points (Base Values). This will allow better sector performance comparability, given one unified starting point. Moreover, historic data for these new indices will be calculated dating back for 1 year and will be published on Tadawul’s website to make available information for any historical analysis requirements. As they are new indices, it is equally important to mention that their Change and Change Percentage values will begin publication on the second day of the launch.
Furthermore, Current Sector Indices will no longer be calculated, however their historical values will continue to be available on Tadawul’s website.
