JEDDAH: The Tadawul All-Share Index (TASI) rose by 1.6 percent, month-on-month, in November as it became apparent that it had been oversold in the previous three months. according to Saudi economists.

The improvement in the TASI’s monthly performance was reflected in the slight upward movement in the Saudi benchmark’s price-to-earnings (PE) during November, stated the latest monthly edition of Saudi Chartbook released by Jadwa Investment.

A number of positive developments, including an announcement by Alandalus Property Co. that it will launch an initial public offering (IPO) this month, helped lift the Saudi bourse. It also outperforms most regional and emerging markets.

TASI turnover in November was flat, month-on-month, with all but one sector (media) exhibiting lower turnover than year-to-date averages.

PE trended slightly upwards to 16.35 but remains below the two year average of 18.36 and is now more in-line with comparable regional and emerging markets although dividend yield remains behind regional benchmarks, said the Jadwa report.

Ten out of the 15 sectors in the TASI saw positive performance in the month of November. The media sector’s performance benefitted from a transaction involving SRMG announced at the beginning of the month.

The media sector, which is often subject to speculative activity, was lifted due to a transaction involving SRMG in an otherwise subdued performance by the remaining sectors.

Brent oil prices averaged $44 per barrel during November, down from $48 pb (-10 percent) in the previous month.

Saudi Arabian crude production was flat month-on- month, at around 10.2 million bpd in October.

In September, nonoil exports continued to trend downwards due to weaker global demand so far in 2015. Imports continued to post a year-on-year decline as well, both in value and volume terms.

John Sfakianakis, Middle East director at Ashmore Group, commented: “The economy’s outlook is still positive albeit in a decelerating mode given that spending is becoming more targeted. There is still demand and domestic consumption that is happening even if money supply is in the single digits.”