Foreign index funds increased their holdings of Saudi stocks during the third quarter of this year by 7.7%, compared to what it was at the end of the second quarter.
According to Arabiya Net, the assets of foreign index funds invested in the Saudi stock market reached $9.48 billion at the end of the third quarter, in light of the low interest rate, high shares and oil prices, and expectations The Kingdom's economy is recovering.
According to the Morningstar Direct audited data, fund managers reduced their holdings of emerging market companies' shares by $3.1 billion during the third quarter of this year, and redirected Part of that liquidity is transferred to the Saudi stock market, according to the Saudi Economic newspaper.
According to the monitoring, the increase in the value of Saudi stock assets, held by foreign funds in the third quarter, amounted to $685.2 million.
The Morningstar platform data revealed cash flows from 157 funds-category of index funds, after the Saudi stock market attracted at least nine new funds during the quarter. Third, the most prominent of these new funds was the Emerging Markets Fund managed by the South African company Signia.
Fund managers have allocated 2.2% of the $423.9 billion total assets of emerging market funds to invest in the Saudi stock market.
The monitored funds were managed by 31 asset management companies and global banks at the end of the third quarter, up 19.2% from the second quarter. Knowing that five funds - out of the 157 funds - invest between 64 and 100% of the fund's assets in Saudi stocks.
While most funds preferred to invest in Saudi stocks, emerging market funds have the advantage of investing in every stock market upgraded by FTSE Russell, S&P Dow Jones indices and MSCI.
