BUSINESS | Saudi Arabia Buys $7.7 Billion Shares In World’s Best Known Companies

RIYADH | SAUDI ARABIA – Saudi Arabia’s sovereign wealth fund has gone bargain hunting during the current economic turmoil, snapping up about $7.7 billion worth of shares in some of the best known companies in the world.

The $300 billion Public Investment Fund bought stakes in global corporate leaders such as Boeing, Facebook, Disney, Marriott and Starbucks. It also invested in two big U.S.banks, Citigroup and Bank of America, and took holdings in oil giants BP, Total and Royal Dutch Shell.

Stock market experts said the buying spree reflected confidence on the part of the PIF that companies badly affected by the economic fallout from the COVID-19 pandemic would recover quickly, and their share prices would rise.

‘The PIF seems to have taken a view on prices from a long-term perspective. We must assume they bought when they were down on the assumption they’ll go back up’, Tarek Fadlallah, chief executive of Nomura Asset Management in the Middle East.

Explaining its investment rationale, the PIF described itself as ‘a patient investor with a long-term horizon. As such, we actively seek strategic opportunities both in Saudi Arabia and globally that have strong potential to generate significant long-term returns while further benefiting the people of Saudi Arabia and driving the country’s economic growth’.

A declaration to the U.S. stock market regulator showed PIF having positions worth about $10 billion in 24 companies. The biggest, worth just over $2 billion, was an already declared holding in taxi app Uber.

The next biggest was an investment in BP, nearly 34 million shares valued at $827 million, followed by the Boeing stake for 713 million. Facebook and Citigroup stakes were valued at about $521 million each .

The new PIF portfolio has a strong bias toward travel, entertainment and hospitality, with shareholdings in the Marriott hotel chain, the online travel company Booking.com and events promoter Live Nation.

There is also interest in technology with investments in Cisco, Qualcomm and Broadcom, and in pharmaceuticals via a stake in Pfizer.

One notable smaller purchase was in Berkshire Hathaway, the vehicle of legendary investor Warren Buffet, who recently sold big stakes on a pessimistic view of future valuations. One Saudi banker said: ‘That’s a cheeky way of PIF telling Buffet that they are more optimistic than him’.

U.S. stocks lost about 30 percent of their value in the crash after the global lockdowns began, but have since recovered about half of that decline after large – scale fiscal intervention by the  federal authorities.


NEWS ALERT | Saudi Crown Prince Condoles President Of France On Death Of Former President

Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense, has sent a cable of condolence to President Emmanuel Macron of the Republic of France on the death of former President Valery Giscard d’Estaing of France. In his cable, HRH Crown Prince Mohammed bin Salman expressed profound sorrow  … Continue reading NEWS ALERT | Saudi Crown Prince Condoles President Of France On Death Of Former President

CORONAVIRUS | Ex-President Would Get Vaccine Publicly To Boost Confidence

NEW YORK – – Three former presidents say they’d be willing to take a coronavirus vaccine publicly, once one becomes available, to encourage all Americans to got inoculated against a disease that has already killed more than 275,000 people nationwide. Former President Barack Obama said during an episode of Sirius XM’s ‘The Joe Madison Show’, … Continue reading CORONAVIRUS | Ex-President Would Get Vaccine Publicly To Boost Confidence

TRAVEL | Austria To Allow Christmas Skiing But Many Restrictions Stay

MILAN – – Austria will allow skiing to start on Dec.24, but will limit the capacity of ski lifts and keep restaurants, bars and hotels largely closed until early January, officials said Wednesday. It also will require many people entering the country over the Christmas period to go into quarantine. Though lockdown measures took effect … Continue reading TRAVEL | Austria To Allow Christmas Skiing But Many Restrictions Stay

Loading…

Something went wrong. Please refresh the page and/or try again.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s