Riyadh-Mubasher: Despite slowdown in Saudi Arabia's GDP and most non-oil services sectors in 2015, the services sector accelerated its growth rate to 5.1%. In addition, the transport and building sectors recorded the strongest growth rates of 6.1% and 5.6%, respectively, Jadwa Investment said in a recent report.
Stock market declined by 4.6% in December on lower monthly oil prices, a tighter fiscal budget and a rise in energy prices for domestic users, the report added.
The weaker performance of the TASI in December saw price-to-earnings (PE) drop further below its two year average.
"We expect some stabilisation in valuations going forward as investors become clearer about the government’s short to mid-term spending plans and this brings some confidence back into the market," Jadwa said.
