Is $2.7b a market parachute? - KSA 

As the Saudi market slumped almost 5 per cent in early trading yesterday and GCC bourse continued to head for the south pole the region's largest economy announced that it was now prepared to consider allowing foreign residents to throw their money at the stock exchange.

There were no queues of white faced businessmen outside Riyadh yesterday to celebrate this opportunity, but the promise by Prince Alwaleed bin Talal to pump $2.7 billion into the market led to an afternoon rally that saw the index rise.
Not a lot. Nowhere near its heights of earlier in the year.
Throwing cash at a market that has been artificially bulled by liquidity seems an odd way to convince investors about the fundamental value of stocks. But then Prince Alwaleed is a man who knows about money so the pocket change he invested yesterday may give some investors hope - for a day or two.
Elsewhere reality ruled as stockholders looked to get out of over-inflated markets and regional stock market indices continued their dramatic fall.
After Monday's crash on Shaikh Zayed Road sentiment was far from in favour of a recovery as the exchange's index fell through the psychologically important 600 mark which it had protected during the previous day's sell off as it closed down a further 1.96 per cent at 599.8.

Qatar led the way down, shedding almost 4.5 per cent and even Oman, one of the few bourse to be ahead of the game for the year, went into the red to the tune of 2.75 per cent.
Investors will be hoping that Alwaleed's intervention could turn the bears into bulls when the markets open this morning.