Saudi stock market might lead integration of regional exchanges
Abdullah Al-Suweilmy with Richard Banks, director, emerging markets of Euromoney, in Riyadh. (AN photo by Ahmed Fathy)
Click here to add Abdullah Al-Suweilmy as an alert
Disable alert for Abdullah Al-Suweilmy,
Click here to add Basil Al-Ghalayini as an alert
Disable alert for Basil Al-Ghalayini,
Click here to add Bloomberg as an alert
Disable alert for Bloomberg,
Click here to add BMG Financial Group as an alert
Disable alert for BMG Financial Group,
Click here to add Jarmo T. Kotilaine as an alert
Disable alert for Jarmo T. Kotilaine,
Click here to add John Sfakianakis as an alert
Disable alert for John Sfakianakis,
Click here to add MASIC as an alert
Disable alert for MASIC,
Click here to add Riyadh as an alert
Disable alert for Riyadh,
Click here to add Tadawul as an alert
Disable alert for Tadawul
The Saudi stock market could possibly take the lead in any moves for integration of regional exchanges, say industry analysts.
Their reaction came in response to Tadawul CEO Abdullah Al-Suweilmy’s announcement that Saudi Arabia’s stock market is interested in expanding abroad and is in talks with regional exchanges about integration.
“We’ve been in discussion with various exchanges in the region and abroad and discussing the notion of joint products, joint indexes,” Al-Suweilmy was quoted as saying on the sidelines of a financial conference in Riyadh.
“Some regional integration would make sense and I have seen in recent months specifically that there have been more serious discussions about integration in the region,” he said in the Bloomberg report.
The Tadawul All Share Index has gained 5.9 percent this year. About 160 companies are listed on the market.
Basil Al-Ghalayini, CEO of BMG Financial Group, said: “In my opinion, since GCC countries are major world energy market players, their stock markets are likely to be susceptible to oil price. With its large market cap, almost larger than all Arab markets combined, the Saudi market will be taking the lead in this integration.”
John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, said: “Any step that makes the Tadawul more approachable and international can only be a plus. Keep in mind that this is the largest market, in terms of liquidity, size and diversification (representation of broad list of sectors with sufficient liquidity) compared to other MENA markets.”
Jarmo T. Kotilaine, a regional analyst, commented: “Creating a market place where trading across the GCC exchanges becomes easier and less costly would obviously be beneficial for all concerned. The key question will have to do with the modalities of such integration.”
- Will terror attacks damper Arabs' appetite for European holidays?
- So cool it's hot: Saudi Arabia's $3.2B HVACR market driven by construction boom
- US, EU protectionist policies may be a blessing in disguise for GCC suppliers
- Dubai to Doha: How far can you stretch your dirham?
- OPEC's poor history of compliance will make production cut deal a challenge
- OnLine Distribution Celebrates 15 Years as Region’s Leading Value Added Distributor
- Transparency key to Saudi stock market stability
- What will happen to the Saudi stock market surge?
- Saudi stock exchange takes a downturn in October
- Global Investment House –Kuwait- Kuwait Stock Exchange -Market Performance