- Markets to stay bearish ahead of Aramco IPO
Khaleej Times - The regional bourses will stay bearish in the coming weeks, ahead of Aramco's IPO as retail investors will sell their holdings to raise cash to subscribe to the Saudi giant's share offering, say, analysts.
It is believed that retail investors opt for profit-booking and sell their blue-chip shares portfolio as they are more liquid stocks. Most of the profit-booking will come in real estate, banking, insurance, consumer services, and telecom stocks.
Equity market analysts say that most of those stocks, which will be offloaded prior to the IPO, will become very attractive in terms of valuations and will spike after Aramco's listing, as investors will start buying those stocks again due to low prices.