NCB Capital’s survey of investment fund managers showed that most fund managers had a positive view of the Saudi stock market in the second quarter of 2022 in in line with the previous quarter, while 38% of them had a neutral view compared to 42% in the previous quarter.
According to the survey, a copy of which was reviewed by Al Arabiya.netinvestors continued to believe that the movement in oil prices will be the main driver of the market and that oil prices will be between $ 90 and $ 100, followed by interest and inflation rates, in in line with previous surveys.
And 34% of managers expect the average daily trading value to stabilize at the average daily trading value recorded in the first quarter of 2022, equal to 8.5 billion riyals per day in the next period.
Despite the positive opinion of fund managers, most managers (52%) indicated that the market is currently overvalued, while only 10% indicated that the market is undervalued.
In the previous quarter of quest’year, 35% of managers believed the market was valued above fair value, while 62% of managers believed market valuations were fair.
The fund managers’ prospects for the banking, healthcare and construction sectors are still positive, while their expectations for the insurance, retail and petrochemical sectors are still positive.
Around 24% of fund managers held cash during the quarter, at a rate of less than 5%, in down from the levels of the previous quarter, equal to 46%. While fund managers holding liquidity at a rate of (6% -10%) account for 38% of managers, compared to around 23% in the first quarter of 2022.
Fund managers believe that the value strategies will outperform in the next period, while the Momentum and Balanced strategy was the least preferred.
In line with Q1 2022 results, 45% of fund managers expect a full economic recovery from the COVID-19 pandemic in 2022, 45% of fund managers expect economic expansion to have peaked at the moment (peak ), while 41% of managers believe the economy is still in recovery phase and, as regards the growth of the economy, 48% of respondents expect the economy to grow by more than 7.5% in 2022.
The NCB Capital Survey is a quarterly survey sent to a group of fund managers investing in the Saudi market in the United Kingdom and in The survey focuses on the Saudi market and aims to collect data relating to the views of fund managers on the Saudi economy and the stock market and compare them with the results of previous surveys.
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