DUBAI: Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), is concerned about the different valuation of financial and other assets that has been a feature of markets affected by the coronavirus (COVID-19) pandemic.
Speaking on the opening panel of the Future Investment Initiative (FII) from Riyadh, Al-Rumayyan said that the pandemic has revealed a “division between those with funds waiting on the sidelines and the working class” who had lost jobs during the economic recession.
He added that although PIF will continue to invest in financial assets, this year will see more emphasis on other asset classes, with the Kingdom leading the way in the next round of its economic diversification program.
“We will be investing not just in financial markets but also in the opportunities in real economies. We are looking at conventional economies, as well as future and new economies,” he said.
Al-Rumayyan told FII that he was worried about the high valuations of big technology companies, some of which are facing increased regulatory scrutiny, adding that he was concerned that the disconnect between financial and economic assets will end in a financial downturn.
His cautious note on markets in 2021 was echoed by David Solomon, chairman of US investment bank Goldman Sachs, who said that the ending of liquidity by the financial authorities was a risk.
“A reversal of fiscal and monetary trends might have an impact on this year’s markets,” Solomon said, but he believed that there would be a “very constructive” market in corporate takeovers and mergers.
Ray Dalio, founder of big US investment firm Bridegwater, was also wary about market prospects this year. “I don’t think equities will be as ebullient as last year. The weight of money and credit created to deal with the virus is working through the market.”
Investment experts sound note of caution at FII summit opening
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Investment experts sound note of caution at FII summit opening
- Al-Rumayyan told FII that he was worried about the high valuations of big technology companies, some of which are facing increased regulatory scrutiny
- He said he was concerned the disconnect between financial and economic assets will end in a financial downturn
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
