New Industry Classification commences on Tadawul
The Saudi Stock Exchange (Tadawul) has announced the reclassification of its equity market sectors in accordance with Global Industry Classification Standard (GICS).
The new industry classification is effective from today (8 January), the bourse has announced. “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,” it said in a statement.
The Tadawul said that it has 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. The new industry classification consists of 20 industry groups representing the second level of GICS.
The calculation of new sector indices started at 5,000 points, to allow better sector performance comparability. Historic data for the new indices will be calculated dating back one year and will be published on Tadawul’s website.
As they are new indices, 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.