Half the fund managers in Saudi Arabia who participated in a survey are expected to increase their local equity exposure despite maintaining a “neutral” market outlook in the first quarter of 2025, according to SNB Capital. 

The percentage of fund managers decreasing equity exposure rose to 18% in Q1 2025 from 8% in Q4 2024, the brokerage's latest fund managers’ survey showed.

Bearish views increased from 16% in Q4 2024 to 32% in Q1 2025, while bullish views declined from 41% in Q4 2024 to 23% in Q1 2025.

The fund managers remained largely bullish on the banking and technology sectors but changed their views on construction to neutral in Q1 2025 from bullish in Q4 2024. They remained bearish on petrochemicals.

The fund managers preferred initial public offerings (IPOs) in the technology sector, the survey found.

Moreover, growth remained the fund managers’ preferred investment strategy, while their preference for dividends declined.

The survey found the Nomu-Parallel Market attractive, but liquidity was an issue.

Only 39% of managers plan to increase their exposure to Nomu in Q1 2025, down from 50% in Q4 2024, while 58% intend to keep their exposure largely unchanged, SNB Capital said.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)