Aramco shares slip on day of MSCI, Tadawul inclusion.

DUBAI -- Saudi Aramco shares fell almost three per cent on Wednesday as investors pocketed profits on the day it was included in the MSCI Emerging Markets Index and the Saudi Tadawul index.

State-owned Aramco listed on the Saudi exchange last week having raised $25.6 billion in the largest initial public offering (IPO) on record.

The oil giant's shares, which were originally priced at 32 riyals, slipped from Tuesday's close to open at

37.5 riyals ($10.00). After shedding further value during the day, they eventually closed 2.8pc lower at 36.7 riyals.

Inclusion in a benchmark index attracts inflows from passive investors who track those indexes but can lead to some initial profit taking, especially if funds or retail investors bought in advance of a company being added.

'It's common after the addition to the MSCI, lots of profit taking,' said a Saudi banker.

Index compiler MSCI said last week Saudi Aramco would have an estimated weight of 0.16pc in its emerging market index and an estimated weight of 6.03pc in the MSCI Saudi Arabia Index.

On the Tadawul all-share index it had a 12pc weighting, the largest after Al Rajhi Bank at almost 14pc, Refintiv data showed. A cap of 15pc limits the risk from a single security representing a large percentage of the index, as well as limiting correlation to the oil price.

The Saudi index, down 0.25pc in early...