Catch Saudi Rally While You Can Before Opening: Chart of the Day
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The rally that sent Saudi shares to a six-year high has further to run as the kingdom prepares to open its market to foreign trading next year, according to Renaissance Capital Ltd.
Even after the biggest weekly surge in the Tadawul All Share Index in 10 months, the CHART OF THE DAY shows prices at 15.1 times 12-month estimated earnings remain below valuations in the neighboring United Arab Emirates and frontier markets such as Nigeria and Vietnam. Meanwhile, Saudi Arabia scores highest on RenCap’s “Macro Index” based on its economic growth outlook, demographics, indebtedness and credit ratings.