Tadawul announces new industry classification

The Saudi Stock Exchange (Tadawul) has reclassified its equity market sectors in accordance with the Global Industry Classification Standard (GICS).
The new industry classification shall be effective from Jan. 8, said a Tadawul statement.
“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 added.
The new industry classification consists of 20 industry groups representing the second level of GICS. All listed companies have been briefed on the classification methodology, including the company’s business activity and revenue as the two main factors of classification.
The calculation of new sector indices will be calculated at 5,000 points, plus the companies’ data pertaining to the previous year to ensure better sector performance comparability.
The new indices and the changed percentage values will appear on the second day of the launch. The companies’ history will still be available on Tadawul’s website.
The materials sector comprised the biggest number of listed companies, including leading petrochemical companies such as SABIC and SAFCO.

Source: Arab News