MIDEAST WEEKAHEAD-Sliding oil beats Gulf stock values down to reasonable levels | Reuters

MIDEAST WEEKAHEAD-Sliding oil beats Gulf stock values down to reasonable levels | Reuters:



"When Saudi Arabia announced last July that it would open its stock market to direct foreign investment, a common worry among fund managers was that when the reform finally took place, the market would simply be too expensive to buy. 




Sky-high valuations were a feature of Gulf Arab bourses for most of last year as the region basked in huge oil revenues, rapid economic growth and rock-bottom interest rates. They created dangerous bubbles in stocks and limited the scope for foreign fund managers to invest.



Now those valuations have been slashed by plunging stock prices as investors react to the collapse of oil prices. This has made the bourses look a lot more attractive from a fundamental perspective, many fund managers and analysts argue."



'via Blog this'