RIYADH: Saudi stocks rose for the fourth consecutive day on Tuesday as the index reached its highest level in three weeks with oil prices heading above $60 a barrel.
“Investors looking for opportunities in emerging markets to take advantage of the expected global economic recovery should take a look at Saudi stocks,” said Julius Baer Group strategist, Mathieu Racheter, according to Al Arabiya.
Racheter, a stock analyst for emerging markets at the Swiss company with $486 billion of assets under management, added that Saudi stocks “could benefit from deflationary trade, especially with high oil prices.”
The Tadawul index has lagged behind the collective recovery in the MSCI emerging market index since the outbreak of the pandemic last year, but was able to make gains over four consecutive days up to Tuesday. It rose to a three-week high with oil prices heading above $60 a barrel, an indicator that global supply is shrinking and demand is improving, according to Al Arabiya.
Racheter does not rule out some profit-taking in global equity markets after the recent strong gains.
“But we will see this as a buying opportunity, and we will buy on the dip,” he said.
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