Saudi Stocks Disconnect From EM Peers as Aramco IPO Nears: Chart - Bloomberg:
Oil giant Saudi Aramco’s confirmation of plans to list locally is dragging on existing members of the country’s equity benchmark. The main Saudi equities index retreated more than 2% in the past two sessions, with some analysts and investors saying the offering -- potentially the largest share sale ever -- may suck liquidity from the rest of the bourse. The Tadawul All Share Index retreated 4.3% last month amid reports of developments in the IPO, while the MSCI Emerging Markets gauge advanced 4.1%, sending the 120-correlation between the two to the lowest level since August 2018.
Oil giant Saudi Aramco’s confirmation of plans to list locally is dragging on existing members of the country’s equity benchmark. The main Saudi equities index retreated more than 2% in the past two sessions, with some analysts and investors saying the offering -- potentially the largest share sale ever -- may suck liquidity from the rest of the bourse. The Tadawul All Share Index retreated 4.3% last month amid reports of developments in the IPO, while the MSCI Emerging Markets gauge advanced 4.1%, sending the 120-correlation between the two to the lowest level since August 2018.
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