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Sunday, 6 November 2016

Saudi Markets Are in Recovery Mode as Bond Debut Sparks Euphoria - Bloomberg

Saudi Markets Are in Recovery Mode as Bond Debut Sparks Euphoria - Bloomberg:

"Stocks just chalked up their longest rally since 2014, default risk is tumbling and the cash squeeze in the nation’s banking system is suddenly dissipating.
Such is the optimism reverberating through Saudi Arabia’s markets since the nation, the world’s biggest oil exporter, made good on a promise to sell its first international bonds that its markets are in their best phase for months. October’s $17.5 billion offering, the largest from an emerging-market nation, was part of the kingdom’s plan to cope with falling crude prices and develop its $646 billion economy away from oil.
“Not only do investors now believe the nation is committed to economic reform, but it now has cash to sort out some issues, such as arrears to contractors,” said Richard Segal, a senior analyst at Manulife Asset Management in London."



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