[ad_1]
From David Barbuchia, Said Azhar and Tom Arnold
DUBAI, Oct. 23 (Reuters) – The Saudi Public Investment Fund is indirectly supporting domestic actions by appealing to local institutions to fight the market crash caused by the murder of journalist Jamal Khashoggi, informed sources said .
Foreign investors have rushed to sell Saudi shares over the past two weeks. Last week, they sold for $ 1.07 billion worth of Saudi shares, representing one of the largest disposals since the opening of the market to direct foreign direct investment. 2015.
The sale took place as investors were increasingly worried about harming relations between Saudi Arabia and the West after Khashoggi's death in Istanbul on October 2nd.
Riyadh announced on Saturday that Khashoggi had died in his consulate in Istanbul, the first confirmation of his death after two weeks of refusal to participate in his disappearance.
Advertising
The Saudi stock index has fallen more than 4% since early October, but losses would have increased if state-related funds had not launched a stock market support process, according to several sources.
Fund managers and bankers said that the public investment fund, which has assets of over $ 250 billion and is Saudi Arabia's largest shareholder, is among the top funds that entered the market and bought shares through funds for institutional investors.
One source pointed out that purchases made with public funds were a natural reaction at a time when assessments were declining.
Funds guaranteed by the Public Investment Fund have bought shares worth about 5 billion riyals ($ 1.33 billion), said a fund manager in the region.
The Public Investment Fund, which will play a key role in Saudi Arabia's efforts to develop non-oil industries, declined to comment.
(USD = 3.77523 SAR)
(Prepared by Abdel Moneim Darar for publication in Arabic – edited by Ahmed Elhamy)
Source link
