Participants attend the last day of the Future Investment Initiative FII conference in the Saudi capital Riyadh on October 25, 2018. / AFP / FAYEZ NURELDINE
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The furor over the murder of Saudi columnist Jamal Khashoggi may soon be seen as little more than a blip for the kingdom's battered markets, according to investors.Saudi Arabia's bonds and stocks were caught in the crossfire of a diplomatic flare-up as government leaders around the world rejected the kingdom's initial attempts to distance itself from Khashoggi's disappearance, prompting the Arab state to finally admit he died at the consulate.The main index's 30-day historical volatility climbed to the highest since 2016, the yield on its $5 billion notes due 2028 rose to a record and the cost of insuring the kingdom's debt against default was headed for its biggest monthly increase in more than a year.But the outflow is temporary, investors say. Gulf Investment Fund said the recent sell-off has exposed some value in equities, although it's not calling this a buying opportunity just yet. And Nexus Investment Advisors Ltd. sees the crisis as a good time to buy the nation's battered bonds.The fund remains "significantly underweight" on Saudi Arabia, with the majority of holdings on financial services and petrochemicals sectors.
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