Monday 7 February 2011

Egypt turmoil spurs Saudi market outflows: Jadwa | Reuters

Foreigners withdrew more than 1 billion riyals ($267 million) from Saudi Arabia's markets as unrest in Egypt fueled concern about the stability of the region, a top executive at Jadwa Investment Bank said.

Turmoil in Egypt, which sparked a region-wide slump in stock markets, has raised risk premiums and will likely delay planned bond and equities issuances from Middle East borrowers.

"We think over 1 billion riyals was withdrawn through the swap agreement in the last three days of January, which reflects an increase in the risk premium foreign investors attach to this region," Paul Gamble, head of research at Riyadh-based Jadwa Investment, said in an interview.

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