TASI declined 2.30% in September on slower GDP growth and an upcoming strong IPO, according to a recent report by MubasherTrade Research.
The report issuer said its KSA FL recorded a loss of 3.00% in September, slightly exceeding TASI’s loss of 2.30% in the same month. This has pared the cumulative performance of Mubasher’s KSA FL since inception on 17 August 2014 to +1.96%.
This – in Mubasher’s opinion – was driven mainly by 1) a slower GDP growth of +3.8% in Q2-14 which came lower than the +5.1% recorded in Q1-14 and 2) a liquidation wave that took place as investors prepare to subscribe to several IPOs in KSA and MENA markets, especially the $6 billion IPO of the country’s largest bank National Commercial Bank (NCB) scheduled to start on October 19 through November 2, 2014.
The KSA FL performance has been dragged by Riyad Bank (-9.55%), Al Rajhi Bank (-8.18%), Bahri (-7.05%), and Samba Financial Group (-5.80%).