For two reasons: JP Morgan recommends buying Saudi stocks

JPMorgan has raised its recommendation for the Saudi stock market to “overweigh “from a” neutral” outlook, according to “Reuters.”

The recommendation to increase the weight means encouraging investors to increase the relative weight of a stock in the investment portfolio, compared to the neutral view, which means that the bank is not against or with the issue of increasing the weight of shares in the portfolio.

Excellent oil prices and dollar strength

“The reason for the recommendation to buy Saudi stocks, despite their decline since the beginning of the year, is due to factors such as excellent oil prices and the strength of the dollar,” JPMorgan said.

JPMorgan plans to allocate its own budget to increase the weight in the stocks of China, Saudi Arabia, and India, given the attractive growth momentum in China, low investor positions, and positive valuations.

Saudi Finance Minister Mohammed Al-Jadaan has predicted that Saudi Arabia’s non-oil GDP will grow by about 6% this year, adding that he expects it to continue in a good position.