Saudi markets in recovery mode as bond debut sparks euphoria

DUBAI: Stocks just chalked up their longest rally since 2014, default risk is tumbling and the cash squeeze in the nation’s banking system is suddenly dissipating.

Such is the optimism reverberating through Saudi Arabia’s markets since the nation, the world’s biggest oil exporter, made good on a promise to sell its first international bonds that its markets are in their best phase for months. October’s US$17.5bil offering, the largest from an emerging-market nation, was part of the kingdom’s plan to cope with falling crude prices and develop its US$646bil economy away from oil.