GulfBase GCC Cap Indices
Large Cap3,931 -0.26
Med Cap3,906 0.04
Small Cap5,103 -0.28
Micro Cap8,532 0.08

Research Reports

Quick Links

Most Viewed News

Most Viewed Companies

Ticker Price Volume
SABIC 97.68 2,120,185
EEC 21.01 5,023,229
QNBK 146 90,102
ALMARAI 72.75 174,955
QGTS 20.1 920,769
GFH 0.62
KCBK 14.56 49,218

Saudi Vision 2010

Source: Shuaa Capital

Saudi Arabia has weathered the storm of the _nancial crisis well, with 2009 real GDP growth estimated at 0.2%. We expect growth to accelerate to 3.2% in 2010 on the back of a sustained global recovery and associated higher oil prices (relative to 2009), continued expansionary _scal policy, and the resumption of local bank lending, which would ease _nancing constraints on the private sector. Higher oil prices will also support the external accounts and we expect the current account surplus to widen to almost 9% of GDP this year.

We anticipate c. 20% increase in the Saudi index in 2010, corresponding to a TASI benchmark target in the proximity of 7,400, on the back of strong commodities prices, expansionary _scal policy, recovering private sector growth, and a steadily improving local credit environment. We expect 2010 earnings to grow by around 26%, after having witnessed a 21% decline in 2009. The strong headline earnings growth across the board would be one of the key drivers of market performance for the year.

Potential risks to our forecasts include a steep decline in oil prices and a possible wave of selling in global equity markets. Also, the emergence of other conglomerate bankruptcy cases and the negative repercussions stemming from the inability of Dubai World to reach a satisfactory agreement with creditors are likely to take a heavy toll on the markets and investor con_dence in the region.

Click here to download the complete report
GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend


Looking ahead, what change you are more likely to make in investing in your domestic stock market?