Thursday 30 August 2018

Mideast funds less positive on Saudi, Kuwait after Turkey shock: Poll | ZAWYA MENA Edition

Mideast funds less positive on Saudi, Kuwait after Turkey shock: Poll | ZAWYA MENA Edition:

Middle East fund managers have become less positive towards equities in Saudi Arabia and Kuwait after Turkey's currency crisis triggered volatility in the markets this month, a monthly Reuters poll showed on Thursday. 

For most of this year, Saudi Arabia and Kuwait were favourites of the funds, because of expectations for Riyadh to join emerging market indexes next year and FTSE Russell's decision to upgrade Kuwait to secondary emerging market status.

But even though Turkey is likely to have little direct impact on Middle Eastern economies, the market volatility has made investors more cautious about buying Saudi and Kuwaiti stocks at rich valuations relative to the United Arab Emirates and other emerging markets.

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