MIDEAST STOCKS-Saudi stocks pull back before FTSE decision, most of Gulf down:
"Saudi Arabia’s stock market pulled back because of profit-taking on Wednesday ahead of a decision by index compiler FTSE Russell on whether to upgrade Riyadh to emerging market status, while most other regional bourses were also weak.
The Saudi index has surged in recent weeks on expectations of a positive decision by FTSE on Wednesday. If MSCI also decides in June to make Saudi Arabia an emerging market, the bourse - which now has a capitalisation of about $500 billion — could see foreign fund inflows exceeding $40 billion in the next couple of years, analysts calculate.
The recent surge has left many valuations in line with or slightly above other emerging markets, however, so some fund managers think the index could drop back after a positive FTSE decision."
'via Blog this'
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