Saudi Stock Euphoria Is Unwinding as End of Catalyst Nears
- Main index retreated after reaching highest level since 2015
- Expensive valuations, geopolitics could keep investors away
This article is for subscribers only.
This week could mark the beginning of the end for the biggest equities play in Middle Eastern markets: the upgrade of Saudi Arabia to emerging-markets gauges.
As index compiler MSCI Inc. starts adding Saudi stocks to its EM benchmark with prices of May 28, passive flows are expected to flock to Riyadh. But many active traders are already focusing on expensive valuations, falling earnings estimates and geopolitics.