Foreign investors turned net sellers of Saudi stocks last week

Foreign investors turned net sellers of Saudi equities for the first time this year, selling SAR 180 million ($48 million) worth of stocks in the week ending April 26, according to data released by the Saudi Stock Exchange (Tadawul).

In the last week, foreigners purchased SAR 1.17 billion ($313 million) worth of shares and sold SAR 1.35 billion ($361 million), as fund managers became wary of the high stock valuations. 

The latest Tadawul data showed heavy net selling of stocks during the last week, at a ratio of more than two to one, by foreigners investing in stocks indirectly through swap agreements.

However, qualified foreign investors (QFIs) which invest directly remained net buyers to the tune of SAR 204.9 million ($54.6 million). They bought SAR 666.7 million ($177.8 million) and sold SAR 461.9 million ($123.2 million).

In the week through April 19, foreigners bought a net $384 million of equities, setting a new record backed by Tadawul's possible inclusion in MSCI EM index after being upgraded by FTSE Russel last month.

Since the beginning of 2018, TASI has jumped 13.8 percent, supported by increasing inflows of foreign funds.