Equity fund managers cautiously optimistic about #Saudi markets - survey

Equity fund managers cautiously optimistic about Saudi markets - survey

Equity fund managers are cautiously optimistic about the Saudi markets, according to a new report by Al Rajhi Capital.

However, only 22% of those surveyed believe that a further rally exceeding 10% is likely.

"This is in contrast to our first survey, when over 90% were optimistic that the Saudi markets will beat the other GCC markets," the brokerage said in the report.

In terms of sentiment, the fund managers are divided with 48% believing further gains of 5-10%, while 30% believe the markets to be in a consolidation phase with gains ranging from 0 to 5%.

Moreover, the cautious sentiment was also reflected in the preference for investment style that is a combination of both growth and value (over 60% votes), while only 16% voted for growth style.

Similarly, in terms of market capitalisation, the majority (57%) of those surveyed preferred large cap stocks.