Saudi stocks became the first to enter the Gulf region in 2022, the “bear market” phase, or what is known in the investment world as a “bear market”, as falling oil prices soured sentiment. after nearly two years of outperformance, second Bloomberg.
is closed Indicator Saudi shares fell 2.3% on Monday, which led to its decline from its highest level in May and confirmed the existence of a bear market, according to the agency.
Saudi stocks fell as investors became increasingly concerned that the global economy was heading into recession, hampering demand for oil, the kingdom’s main resource.
Up until May, the country’s equities were considered the safest in emerging markets, buoyed by rising energy prices and government initiatives to diversify the economy.
Hasnain Malik, a “Tellimer” strategist for the agency, indicates that concerns about growth and global demand from global wealth investors affect performance and explains: “For a period, like the rest of the world,” Tadawul ” could outlast the Federal Reserve (the Central Bank of the United States) data longer than any local indicator.
However, the agency noted that despite this, even with a 3.3% decline this year, Tadawul is still outperforming the MSCI Inc Emerging Markets Index.
Saudi shares are trading at a 35% increase relative to their counterparts in developing countries, which is above the 23% average achieved over the past decade.
The bear market, unlike the bull market, is a market where stock prices are known to continually go down as stock sales increase, according to the website. “eToro“Investments. For a market to be described as a bear market, markets must decline by at least 20% at the peak of a major stock index, according to the website.”fortune“.
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