Unruffled in Riyadh, Saudis Stick With Stocks as Crude Tumbles - Bloomberg Business

Unruffled in Riyadh, Saudis Stick With Stocks as Crude Tumbles - Bloomberg Business:



"The Saudi stock market is showing its mettle in the face of the latest oil rout that drove Brent into a bear market in July.



The kingdom’s Tadawul All Share Index has retreated 4.2 percent since the end of June, compared with declines of 15 percent in Brazil in dollar terms, 11 percent in Russia and almost 10 percent in Nigeria. Brent, the benchmark oil grade against which Saudi crude is priced, has tumbled 21 percent in that period.



The resilience shows how the world’s biggest crude producer is riding out the slump thanks to the confidence of locals who account for almost all the $525 billion market’s investors and the government’s determination to press ahead with infrastructure spending. That may give comfort to foreigners considering buying Saudi stocks after the nation opened the market to overseas investors for the first time on June 15."



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