Saudi Bulls Retreat as Aramco Letdown Adds to Shock Over Policy - Bloomberg

Saudi Bulls Retreat as Aramco Letdown Adds to Shock Over Policy - Bloomberg:

The Arab world’s biggest bourse is losing its appeal to foreigners just two months after it won inclusion in MSCI Inc.’s emerging-market index.

That’s because the initial euphoria surrounding Crown Prince Mohammed bin Salman’s efforts to overhaul the nation’s economy has given way to skepticism as the kingdom put on hold the initial public offering of oil giant Aramco. A dispute over Canada’s criticism of the jailing of Saudi rights activists has also heightened concerns over the prince’s increasingly assertive policy and the impact it would have on capital flows.

Overseas money managers turned net sellers of Saudi stocks in six of the past eight weeks after MSCI said it will include the country in its emerging-market equity indexes starting June 2019. Global factors, including the roll-back of crisis-era stimulus and a global trade skirmish, have also dented demand for riskier assets.