A survey by SNB Capital showed that fund managers now expect a rise in the Saudi stock market in the latest quarter of questyear, as the percentage increased from 30% to 37%, while the percentage of those who expect a decline in the market decreased from 35% to 30%.
Most investors expected interest rate hikes and inflation to be the main focus driver markets, followed by oil prices.
Fund managers’ expectations were that oil prices would be in the range of $70 to $80 a barrel, a decline from previous expectations that oil prices would be the main driver of the stock market and would have been between 80 and 90 dollars a barrel.
Additionally, 30% of fund managers believe the Saudi market is below its fair value, which is the highest percentage since the launch of the SNB Capital survey.
As for the sectors that should record increases, it is the construction sector, according to the survey, while the sectors that could decrease are the petrochemical and the retail sector.
As for the growth of the Saudi economy, fund managers’ expectations were for GDP growth of 3.1% in 2023.
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