This Battered Emerging-Market Stock May Get a Quick Bounce
- Saudi chemical giant Sabic among most oversold emerging stocks
- Long-term trend still bearish as technical signals point up
Are Emerging Markets Starting to Rebalance?
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Saudi Basic Industries Corp. may be poised for a short-term rebound after becoming one of the developing world’s most oversold stocks, according to three technical indicators that some analysts use to predict share price moves.
The state-controlled company that’s among the world’s biggest chemical manufacturers plunged 7.9 percent this year through Wednesday as falling oil prices and Saudi Arabia’s escalating tension with Iran battered the country’s equity market. The kingdom’s plan to cut subsidies and sell stakes in government entities exacerbated the stock’s retreat.