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Throw a dart at the globe, and you’ll probably land on a country that boasts a strong stock market return. That’s not the case, however, for the Kingdom of Saudi Arabia. The
KSA: Saudi Arabia Stocks Sagging In 2025
Summary
- I rate KSA as a hold due to poor momentum, weak technicals, and only modest earnings growth despite a reasonable P/E ratio.
- KSA's portfolio is heavily concentrated in financials and materials, with high volatility and a less attractive PEG ratio of 2.4x.
- The ETF faces bearish technical patterns, with crucial support at $36; a breakdown could trigger further downside toward $26.
- While the dividend yield is attractive, seasonality is weak through Q3 and rallies may be limited by overhead supply and poor risk grades.
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