Saudi bourse may see a correction after MSCI decision - Al Masah Capital | ZAWYA MENA Edition

Saudi bourse may see a correction after MSCI decision - Al Masah Capital | ZAWYA MENA Edition:

Saudi Arabia’s stock market may witness a correction following global index compiler MSCI’s decision to incorporate the Kingdom into its global emerging markets index, according to an executive at a Dubai-based asset management firm. Foreign institutional investors have already been buying into the Saudi market, with trading activity analysis during the first quarter of 2018 indicating that foreign institutional investors purchased approximately $2.1 billion worth of Saudi equities, according to Akber Naqvi, managing director and head of asset management at Al Masah Capital. Saudi Arabia’s Tadawul All Share Index has been the best-performing Gulf stockmarket so far this year, posting gains of over 15 percent since the start of 2018 as investors anticipate a significant amount of fund inflows. Yet Naqvi said that there may be reversals in prices as investors seek to lock in gains.