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Another USD 535bn of potential for EM stock markets!
Weekly investor research
20 April 2015
Following on from last year’s declaration of intent, the Saudi capital markets regulator has now formally announced that the
USD 535bn Saudi Arabian stock market will open its doors to qualified foreign institutions in June. Saudi Arabia’s stock market
is larger than the stock markets in Mexico, Indonesia, Malaysia and Russia. Technicals are strong and valuations are likely to
re-rate higher over several stages, particularly when the market is included in the main benchmark indices. Fundamentally, the
market offers attractive exposure to petro-chemicals and consumer stocks with the latter strongly supported by counter-cyclical
policies recently announced by the government. We also see further developments in China, encouraging signs of greater
Indian bond market access, Russian economic resilience and continued pressure on the Turkish lira.