Growth Concerns Weigh On SASI

May 2007 | Economic Analysis

We maintain our cautious view on the Saudi All Share Index (SASI) given deteriorating fundamentals, though there are some small indications of a pick up in investor sentiment following last year's correction. The SASI has plunged by over 60% from its zenith hit in February 2006 and is currently trading within the 7,300-7,600 band. Indeed, as with the UAE equity markets, the SASI has not seen a recovery despite a still benign backdrop of ample liquidity, positive global dynamics, and a stream of good news. One example is the Saudi Basic Industries Corporation (SABIC), which announced a 50% y-o-y rise

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