Most Gulf Arab markets rose on Monday, but gains prompted by Saudi Arabia's latest $93 billion social spending plan were tempered by doubts over how this would be implemented.
Saudi Arabia's index .TASI, the largest Gulf Arab market, rose 0.2 percent, having surged 4.5 percent on Sunday, with regional markets rallying after the kingdom offered $93 billion in social handouts in a bid to neuter dissent. [ID:nLDE72H0ZC]
"I think we will have a day or two more to go, but then questions will start to come about the time frame for the Saudi stimulus and the costs associated to waste at the bureaucratic level," said Robert McKinnon, ASAS Capital chief investment officer. "Much of the stimulus is going to the people that are happy and have jobs, or own companies and land. I don't see any intent at actual reform. So it seems to me this is a PR stunt."
No comments:
Post a Comment