The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Oil has denied Saudi Arabia the opportunity to overtake South Africa as the biggest stock market in the Middle East and Africa, even as political turmoil and a faltering economy hold back share prices in Johannesburg. The total market capitalisation of the South African bourse was $489 billion, about $25 billion more than that of Riyadh’s after its main index advanced 10 percent this year, about five-times the gain in Saudi Arabia’s Tadawul All Share Index. The kingdom’s market reforms, which were designed to attract foreign investors, have been countered by the effects of lower crude price, the kingdom’s main source of income.
Another factor keeping the combined value of Johannesburg stocks ahead of Riyadh’s in dollar terms is foreign exchange: while the riyal is pegged against the greenback, the rand has strengthened 6.3 percent this year to 12.9291 per dollar.