Will Ramadan bring new interest in the Saudi ETFs?
Posted on 11 August 2010 with no comments from readers
The launch of two Exchange Traded Funds for the Tadawul or Saudi stock market this year has raised hopes for a market recovery. The August edition of the ArabianMoney investment newsletter contains a detailed appraisal of these ETFs and prospects going forward.
This new investment opportunity offers both nationals and foreigners a chance to buy a modestly priced investment in a basket of top Saudi Arabian companies. The first ETF is an index fund covering the 30 top stocks, the second covers 14 petrochemical companies.
TV interest
The ArabianMoney investment newsletter on Saudi ETFs caught the eye of Dubai news channel City 7 and a brief interview with editor and publisher Peter Cooper is included in the YouTube clip below.
Basically the argument is that Saudi stocks topped out more than four years ago at 21,000 and have fallen a long way to just above 6,000 points. This leaves equities on a price-to-earnings ratio of about 12 and twice book value. For the well managed listed companies of oil rich Saudi Arabia this is very cheap.
The stock market moves in cycles and this has to be close to the bottom, or it may have already past. Certainly buyers of the ETFs with a longer term horizon stand to be well rewarded with their risk highly diversified in a very inexpensive investment. Subscribe to the ArabianMoney investment newsletter today and we will send you the August edition as a free gift, with the full article on Saudi ETFs (click here to subscribe).
This is the start of the Holy Month of Ramadan and ArabianMoney wishes all our readers a happy and fulfilling festive season. Perhaps Ramadan will also be a turning point for local stock markets.
