BofAML Has Been 'Very Cautious' on Saudi Stocks, Yazhari Says

The video discusses a cautious approach to the Saudi markets due to negative momentum in sectors like petrochemicals and banking, with 80% facing earnings downgrades. It highlights emerging opportunities in other areas. The discussion shifts to oil prices, emphasizing the reintroduction of geopolitical risks and potential upside risks for 2020. The analysis of Saudi banks reveals concerns over valuations and interest rates, with specific recommendations for Riyad Bank and NCB. Finally, the video examines Emirates NBD's undervaluation due to foreign ownership limits and potential changes that could spark interest.

What was the primary reason for the cautious approach towards the Saudi markets?

• Positive momentum in the petrochemical sector

• Earnings upgrades in the banking sector

• Negative momentum and earnings downgrades

• High interest rates in the United States

What factor has reintroduced geopolitical risk into oil pricing?

• Oversupply in the 2020 market

• Stable oil prices

• Decreased demand for oil

• Recent geopolitical flare-ups

What is the main reason for the underperformance of Saudi banks according to the speaker?

• Strong earnings growth

• High loan growth

• Decline in U.S. interest rates and valuation concerns

• Increased foreign investment

Which bank is highlighted as a top sell recommendation?

• Emirates NBD

• Riyad Bank

• National Commercial Bank

• Saudi Investment Bank

What has historically limited foreign investment in Emirates NBD?

• Inclusion in major indices

• Low dividend yields

• Restrictive foreign ownership limits

• High stock prices

What is expected to happen with Emirates NBD's foreign ownership limit?

• It will decrease to 10%

• It will be eliminated completely

• It will remain unchanged

• It will increase to 40%

What is one reason the shares of Emirates NBD have not rallied strongly?

• Lack of interest from local investors

• Expectation of a capital increase at a discount

• High foreign ownership

• Inclusion in major indices