Overseas investors pulled a net $176 million from Saudi equities in the eight weeks ending Aug. 16.
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
The Arab world's biggest bourse is losing its appeal to foreigners just two months after it won inclusion in MSCI Inc.'s emerging-market index. That's because the initial euphoria surrounding Crown Prince Mohammad bin Salman's efforts to overhaul the nation's economy has given way to skepticism as the kingdom put on hold the initial public offering of oil giant Aramco.Overseas money managers turned net sellers of Saudi stocks in six of the past eight weeks after MSCI said it will include the country in its emerging-market equity indexes starting June 2019 .Overseas investors pulled a net 660.6 million riyals ($176 million) from Saudi equities in the eight weeks ending Aug. 16 .A Big DealWhen the IPO was initially flagged in 2016, Saudi officials hoped it would raise as much as $100 billion, based on a $2 trillion valuation that some analysts have said was too high.In turn, the Public Investment Fund, which owns 70 percent of Sabic, would obtain the money it had initially hoped to raise from the Aramco IPO, the same people said, asking not to be named because the talks are private.
FOLLOW THIS ARTICLE