FILE PHOTO: A sign of Saudi Aramco's initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. REUTERS/Hamad I Mohammed/File Photo

DUBAI (Reuters) - Saudi Aramco shares closed down 0.66% at 37.75 riyals ($10.07) on Tuesday, Refinitiv data showed, ahead of their inclusion into the MSCI emerging markets index, which will be effective on Wednesday.

Its entry into the index will be based on Tuesday’s closing price, which puts the oil company’s market value slightly above $2 trillion - the price tag long sought by Crown Prince Mohammed bin Salman.

Aramco’s shares will also join the Tadawul index on Wednesday and global benchmark FTSE on Thursday, inclusions that analysts have said should fuel demand, particularly from “passive” investors.

According to a note by Dubai-based Arqaam Capital, based on the preliminary free float assigned by the index compiler, passive inflows from the MSCI inclusion will amount to about $710 million while FTSE’s inclusion could lead to about $400 million in total inflows.

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

Its shares, priced at 32 riyals, rose to a maximum limit of 10% on their first day of trading, and have hovered around a $2 trillion market value since then.

On Tuesday they lost momentum for the first time since their listing.