SNB Capital says fund managers more upbeat on Saudi market in Q2 2023

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SNB Capital said that investment fund managers in Saudi Arabia have a more optimistic outlook, favoring tourism, healthcare, and insurance sectors in the second quarter of 2023.

However, they hold a bearish outlook towards petrochemicals and consumer sectors.

In a survey conducted on fund managers, the brokerage said that most fund managers believe the market has a fair value and often consider the economy is rebounding. 

Moreover, fund managers see that oil prices will be the main driver of the market, followed by interest rates and inflation. They expect oil prices to range between $70 and $79.9 per barrel but forecast no additional interest rate hikes this year.

The brokerage indicated that the majority of fund managers expect the Saudi GDP to grow at 3.1% in 2023.

As for IPOs activity, SNB Capital said that fund managers believe that healthcare and pharmaceuticals are the most attractive sectors, followed by tourism.

In terms of asset allocations, most fund managers advise maintaining higher levels of liquidity in their portfolios, compared to the low levels in the previous survey.