Tadawul All Share Index (TASI) is likely to reach 9,409 points by the end of this year, trading at a P/E ratio of 17.6x, ahead of rallying to 10,162 pts in 2020, Riyad Capital said in a recent report.
In the last 12 months prior to inclusion, the Saudi benchmark added just 8 percent, versus a much steeper rise in peer markets ahead of index inclusion.
We believe TASI will follow a different path. The market may rise in the inclusion process as: a) Index inclusion is staggered; b) No. of stocks to be included are much higher; c) Market is not fundamentally overvalued; d) Foreign investors have adopted a more cautious investment approach in the run-up.
“We can reasonably expect between SAR90-100 billion flows in the market. Traded value can rise by USD 100 million per day (+14 percent),” the brokerage firm added.
Most of passive flows are expected between March and August, as TASI can peak during this period.
Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. Know more about our Privacy Policy here.
Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. You consent to our cookies if you use this website
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}