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Tuesday, 18 July 2017

Biggest MSCI Emerging Hopeful Falters as Saudi Profits Stall - Bloomberg

Biggest MSCI Emerging Hopeful Falters as Saudi Profits Stall - Bloomberg:

"All it took was five trading days.

That was the time EFG-Hermes Holding SAE needed to go from overweight to underweight on Saudi Arabian shares after they were added to MSCI Inc.’s list for potential classification as an emerging market. The reasons: flat company earnings and excessive valuations.

Analysts have been slow to raise profit estimates for the $463 billion exchange -- the biggest among markets seeking emerging status on MSCI indexes -- as the kingdom struggles to diversify its economy away from oil amid low crude prices. While developing nation stocks have posted an 18 percent increase in 12-month forward earnings estimates over the past year, Saudi profit expectations are down 0.4 percent over that period."



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