Profit Outlooks Give Life to Bottom-Dwelling Saudi Shares
- Earnings estimates rise as recovery beats expectations
- Tadawul still among world’s worst performers this year
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Saudi Arabia is working its way out of an economic slump faster then expected, prompting analysts to upgrade earnings estimates for stocks in the world’s largest oil exporter.
Twelve-month profit expectations for members of the Tadawul All Share Index have climbed to the highest level since November, while the index has dropped 4 percent since Jan. 1. That’s made the benchmark the cheapest relative to emerging markets in six months. The gauge’s slump ranks it among the world’s five worst performers, bucking a 15 percent rally that has marked the best start to a year for emerging stocks since 2009.