Saudi Arabia, United Arab Emirates, Philippi discussed on Biz 1190 Overnight
This is biz. Saudi Arabia was the first session in six sessions. It was a very good moment for Saudi stocks. They're the ones that felt the most on Thursday done one point six percent and but still trimming gains in the week for five percent. That means that what we hear from investors is. Of course, there's tension in the air, people do not like to deal to work with the fact that nobody knows exactly how could this escalate and the first thing that you imagine too. So just the names that were providing some games independence you few days in Philippi. This is coming at a time when we're seeing quite a bit of foreign buy into the Saudi market as well could loss been much steeper, if it wasn't for the arrival of foreign investors. Yes, exactly. It's quite interesting to see this happening at a moment that the Saudi market starts to become. Quite popular within emerging marketing vectors that had never had to actually look at this market before. And they're coming at a moment that the market is actually welcoming inflows, quite increased jump political Titian, as we just spoke. So if we look at weekly inflows to the Saudi market, so far, this year, they've been steadied. There's been just one week when the foreigners were not net buyers. If we look at KUA FIS, which is the professional, the big funds from abroad they've being buying on a spree. That's like the highest since the market open to foreigners four years ago. This is a new market to a lot of investors and this influence coming, of course because of the inclusion of the Saudi stocks into deficiency, and MCI may emerging market benchmarks, which is C dissing flows coming, no matter what happens within the region in terms of political tension, mostly because it specif- money that has detract the benchmarks. Real political tensions are reflected very differently in asset classes across the body of a twenty seventeen and the dislocations in pretty much every metric nothing short of a stoning going into Trey today, though, what are some of the names investors should be looking considering all of this, that what we said it's very important to track those names that received a lot of those inflows from the foreigners such as other as she Bank NCB SABIC, the big names within the Saudi market. They're the ones that have been targeted by a lot of this best of money and also considering the job political risk. We have do DP road. I'm sorry DiPoto parade or here in Dubai. The stock fell five percent on Thursday. Mostly on top of this in tension. It was the biggest drop in exactly the windy other attacks happened in the goal. So that's a very sensitive named to, to such news. Although thank you very much for some of those thoughts markets, equities reported. Stay with this part of the world and talk about the United Arab Emirates banking sector coz, that's just experience. Recent Russia, Manet activity. I wave of mergers started with banks that have common owners of Bloomberg intelligence team suggests say second wave where ownership structures are less supportive is imminent with third wave across the insurance sector likely to fall, bringing Ed but Krystal easy financials analysts for Bloomberg intelligence joins us around the no, you suggested then any research could be that second, and potentially surge wave time line. What kind of features are we looking at here? We believe the second wave is inevitable. Even though there is less support of shareholders structure, and most of this would happen across imminent efficiency, hypothetic wineman, and equity and conditions spending will push for the second wave of consideration. We have undefined set of unperforming banks among the sixteen convention. The UAE's. And this bang on the perform one more than one metric of return on equity, deployment of capital and liquid. And if. An eminent in terms of the financials that you look at which banks could be a target now. When we look at this underperforming banks, I feel of them. Commercial Bank International, the United Auto banks Shangai.