The newspaper Al-Eqtisadiah revealed that global index funds recorded the best entries in the Saudi market in 21 months.
In a report, the daily Al-Eqtisadiah confirmed that “global index” funds have registered the best entries in the Saudi market in 21 months, thanks to a change in the geographic investment map. , as a result of the crisis in Ukrainian, and the growing forecasts from major asset management firms on the positive impact of high oil prices on parts of the local economy and listed companies.
The “Al-Eqtisadiah” report states that first quarter disclosures from funds known as ETFs showed that the value of the assets of “foreign index funds” invested in the Saudi market rose to fastest speed since June 2020. ” , as the total amount of liquidity flows increased by 25.3% at the end of the first quarter compared to the end of 2021, according to audited data from the platforms Morning Star Direct and Al-Eqtisadiah.
According to the newspaper report, “The value of the assets of foreign index funds invested in the Saudi stock market rose to $ 12.33 billion at the end of the first quarter, compared to 9.84 billion riyals at the end of the fourth quarter of 2019. 2021. also that “the value of” increase “in the value of assets of Saudi shares, held by foreign funds in the first quarter, reached 2.49 billion dollars compared to the data of the fourth quarter of 2019”. 2021.
And the newspaper noted that “foreign index fund managers continue to reduce their holdings of shares of Russian companies and emerging markets, and redirect some of that liquidity to the Saudi stock market,” citing that “fund managers are allocating 2.84% of the value of the fund’s assets, directed to market shares, the start-up amounting to $ 433.6 billion, to invest in the Saudi stock market within three months of the year ito.
And as Al-Eqtisadiah reported, data from the “Morning Star” platform revealed the existence of cash flows from 164 funds in the index fund category, after which the Saudi stock market would attract the least with five new funds in the first quarter AND the funds covered by the monitoring were managed at 32 asset management companies and global banks at the end of the first quarter.
The Al-Eqtisadiah report added: It is known that “all five funds, out of 164 funds, invest between 100% and 64% of the fund’s assets in Saudi equities”, because the most funds invest in Saudi equities through emerging market funds that are distinguished by investing in all stock markets, it is promoted in all indices, including FTSE Russell, Standard & Poor’s Dow Jones and MSCI, according to the newspaper.
The report states that “the majority of individuals’ investments in the Saudi stock market come from the countries of the European Union, the United States of America, and Canada, ”explaining that“ exchange-traded funds are funds in investments that follow an index such as “FTSE” or others, and are divided into equal units that are traded on the financial market during trading periods, and these funds combine the benefits of both funds and stock.
Source: “The Economist”
Source: Arabic RT
