They’re back: Foreign investors make u-turn after panic exit in October

Foreign investors u-turn after panic exit in October: The Tadawul saw net inflows of SAR 2.5 bn from foreign and GCC investors last week, according to Tadawul data reviewed by Enterprise, reversing a drain that saw foreign and GCC investors sell positions worth SAR 3.8 bn in October on fears that markets could crater if the war in Gaza were to become a regional conflict.

Last week on Tadawul: Foreigners were bullish, and Saudi investors were sellers.While foreign investors recorded SAR 875.7 mn in net purchases in the week ending 16 November, and GCC investors acquired positions worth SAR 504 mn, Saudi investors were bearish with net sales worth SAR 1.38 bn, according to Tadawul figures.

Foreign ownership of issued capital on Tadawul rose slightly to 3.30% on the week ending 16 November, up from 3.24% on the week ending 31 October. Foreign ownership of freefloat shares was roughly flat at 12.50%, down from 12.56% the previous week.

But, it’s going to be a bumpy ride: “Saudi Arabia has a strong fundamental story and significant untapped potential,” Bloomberg reports quoting Junaid Ansari, director of investment strategy and research at Kamco Investment. “That said, we expect volatility in the near term due to a lot of chaos in the market,” Ansari added.

What the pundits are tipping: “Keeping exposure to consumer staples, utilities and health care should provide a hedge,” said Aditum Investment Head of Investment Structuring Ali El Adou.

THE CLOSING BELL-

The TASI fell 0.2% yesterday on turnover of SAR 7.1 bn (x.xx% above the 90-day average).

In the green: Naqi (+6.5%), Ades (+1.8%) and Al Omran (+2.5%).

In the red: Al Rajhi Takaful (-6.2%), UACC (-0.5%) and Al Aseel (-0.1%).