What factors drive Saudi stock markets? - Firm characteristics that attract retail trades

As Saudi Arabia recently opened its stock market to international investors, there are strong interests in the uniqueness of Saudi stock markets. Unique features of Saudi markets include the dominance of retail trading and many limits-to-arbitrage. Saudi investors tend to pay strong attention to stocks with recent extreme price appreciations. Among these lottery-like stocks, investors tend to bid up (down) stock prices of profitable (unprofitable) firms gradually, generating a stock return predictability by firm profitability. The evidence suggests that investors' short-term attentions have significant effects on Saudi stock returns, providing both opportunities and risks for informed investors in Saudi markets.