Tuesday 7 June 2016

MIDEAST STOCKS-Saudi edges up after economic reform announcement | Reuters

MIDEAST STOCKS-Saudi edges up after economic reform announcement | Reuters:

"Saudi Arabia's stock market edged up in early trade on Tuesday after the government announced details of its economic reform plans.

Monday night's 110-page reform document contained hundreds of projects and targets, including substantial austerity measures. The government aims to reduce the value of public salaries and wages as a proportion of the state budget to 40 percent from 45 percent by 2020, and cut water and electricity subsidies by 200 billion riyals ($53 billion).

But the austerity steps were largely expected - the market had been falling in previous weeks because of those expectations - and the main stock index was 0.4 percent higher after 30 minutes of trade."



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