Saudi Arabia’s benchmark index may close the year between 6,600 and 7,000 points as political unrest in the region may limit gains from government spending, according to Jadwa Investment.
“While two substantial government spending packages will boost the economy, regional tensions are likely to linger through this year and weigh on investor sentiment,” Jadwa said in a research note.
The fair value for the Tadawul All Share Index at the end of the year is around 7,400, “but the political uncertainty elsewhere in the region means this level is not likely to be reached,” Jadwa said.
Tadawul All Share Index has lost 8.3 percent this year and closed 1 percent higher at 6.069.94 on March 16.
Follow us on
