Tuesday 23, October 2018 by Kudakwashe

Saudi's PIF supports stocks to limit Khashoggi crash


The Saudi index has dropped over four per cent since the beginning of October.

The Public Investment Fund (PIF) has been indirectly supporting Saudi stocks, using local institutions, to limit a market crash caused by the killing of Jamal Khashoggi.

This came after foreign investors dumped Saudi equities over the past two weeks, last week they sold SAR 1.07 billion in Saudi stocks, in one of the biggest sell-offs since the market opened to direct foreign buying in mid-2015.

The loss is believed to have been bigger if state-linked funds had not mounted an operation to support the stock market.

The sovereign wealth fund, with assets estimated at over $250 billion and the largest shareholder in public equities in the Kingdom is intervening in the market, buying stocks through institutional funds, fund managers and bankers.

Stocks that PIF holds stakes in are among those that have outperformed the index in the month to date, among them Riyad Bank, Samba Financial Group and National Commercial Bank, reported Reuters.

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