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Saudi Arabian Stocks Tumble as Oil, Rates Roil Mideast Equities

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·3 min read
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(Bloomberg) --

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Saudi Arabian shares closed at the lowest level in about six months, leading declines in Middle East markets, following the global sell-off last week and oil’s plunge on Friday.

The Tadawul All Share Index dropped 4.4% at close, with the index posting its longest losing streak since 2020. Aramco fell 4% to the lowest since March 15. Still, the state-controlled oil firm is the world’s biggest listed entity with a market value of $2.17 trillion compared with $2.13 trillion for Apple.

Gulf equities are selling off due to the impact higher interest rates could have on the demand of commodities, said Jassim Al-Jubran, head of sell-side research at Riyadh-based Aljazira Capital. “The current hit is driven by panic and partially by margin calls.”

However, Al-Jubran said he doesn’t “expect the current declines in the Saudi market to sustain for long time as we start to see a good potential in some sectors with the current decline.”

  • All 14 sectors on the Saudi Tadawul inex traded lower

  • Al Rajhi Bank contributed the most to the index decline, dropping 4.6%

    • West Texas Intermediate on Friday dropped to $109.56, shedding 6.8%, the biggest daily drop since March as US Fed Chair Jerome Powell doubled down on his determination to curb the hottest inflation in decades with more aggressive rate hikes

    • Fears that rising interest rates and a slowdown in economic growth will lead to demand destruction have gripped the market but in the long run, supplies still look tight, market participants said

Read more:

  • Oil Tumbles Below $110 as Fed Signals More Hawkishness Ahead

  • Stocks Suffer Worst Week Since March 2020 on Recession Fears

  • European Stocks Post Worst Week Since March as Commodities Fall

  • America’s Top 1% Lose $1.5 Trillion on Stocks Before Bear Market

Other Mideast Markets:

  • Qatar Exchange Index fell 3.5%, the biggest drop since March 2020; 20 shares fell while none rose

    • Industries Qatar contributed the most to the index decline, decreasing 5.5%

  • Boursa Kuwait Premier Market Price Return Index fell 3.3%, the biggest fall since May 12; 25 shares fell while none rose

    • Kuwait Finance House contributed the most to the index decline, decreasing 3.5%

  • Muscat Securities MSM 30 Index closed slightly lower, erasing gains of as much as 0.3%; the index was pushed up by a gain of as much as 9.7% in HSBC Bank Oman after potential merger plan

  • HSBC Oman Agrees to Start Initial Talks on Merger; Shares Climb

    • Also read: Foreign Direct Investment in Oman Climbs 19% in 1Q

  • Tel Aviv Stock Exchange 35 Index rose 1.3%, with 28 shares rising, and 7 falling, at 3:49pm local time

  • Egyptian Exchange EGX 30 Price Index fell for the seventh day, dropping 1.4%

  • Bahrain Bourse All Share Index fell 1.1% at close

  • NOTE: Dubai and Abu Dhabi stock markets are closed on Sunday for the weekend

  • NOTE: Dubai and Abu Dhabi stock markets are closed on Sunday for the weekend

(Updates with closing prices in Gulf markets)

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