575 days ago • Posted by William Ramstein

Saudi stocks become more expensive vs. EM peers

Saudi stocks are becoming less cheap after stocks recently surged 7.6% this year. After the decision to keep oil production unchanged a month ago, the price of stock has risen, seen earlier around the $70 to $71 mark. This has benefited the equity market pushing the Tadawul index to 19 times estimated earnings or about 27% higher than the MSCI EM index as indicated in the chart below. Estimates at Goldman Sachs and JP Morgan have seen oil prices reaching $80 by the end of the third quarter. Source: Bloomberg