Tuesday, 7 June 2016

MIDEAST STOCKS-Saudi up after reform announcement; rest of region strong | Reuters

MIDEAST STOCKS-Saudi up after reform announcement; rest of region strong | Reuters:

"Saudi Arabia's stock market rose on Tuesday after the government announced details of its economic reform plans, while an improved mood in global markets lifted bourses elsewhere in the Middle East.

A 110-page Saudi reform document released on Monday night contained hundreds of policies and targets, including major austerity measures. The government aims to reduce 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).

Investment firm EFG Hermes commented: "Our first reading reaffirms our view that Saudi Arabian companies and consumers face a period of relative austerity over the next few years, and we stay underweight on Saudi equities.""



'via Blog this'

No comments:

Post a Comment