Saudi stocks fall as oil and rates crash

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Saudi Arabia’s benchmark stock index headed for the longest losing streak since 2020, following a global equity selloff last week and after oil fell the most in three months on Friday. Stocks in Qatar and Kuwait also fell.

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

However, Al-Jubran said he “does not expect the current declines in the Saudi market to hold for long as we start to see good potential in some sectors with the current decline.”

  • Tadawul All Share Index fell 3.8% to lowest since January; the benchmark has fallen over the past six days

  • All 14 sectors traded lower, while more than 200 of the benchmark’s 211 stocks fell

  • Aramco was the biggest contributor to the index’s decline, down 3.1%

    • On Friday, West Texas Intermediate fell to $109.56, losing 6.8%, the biggest daily drop since March as U.S. Fed Chairman Jerome Powell doubled down on his resolve to rein in the highest inflation for decades with more aggressive rate hikes.

    • Fears that rising interest rates and slowing economic growth could lead to demand destruction gripped the market, but long-term supply still looks tight, market participants said.

    • State-owned Aramco is still the world’s largest listed entity with a market value of $2.18 trillion compared to Apple’s $2.13 trillion.

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Read more:

  • Oil Falls 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 tumble

  • America’s Richest 1% Lose $1.5 Trillion on Stocks Ahead of Bear Market

Other Middle East Markets:

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

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

  • The Muscat Securities MSM 30 index gains 0.3%, pushed by a 9.7% jump in HSBC Bank Oman after a potential merger plan

  • HSBC Oman agrees to start initial merger talks; Rise of shares

  • The Tel Aviv Stock Exchange 35 index rose 1.1%, with 27 stocks up and 8 down

  • The Egyptian Stock Exchange’s EGX 30 price index fell for the seventh day, down 0.5%

  • Bahrain Stock Exchange All Share Index fell 1.5%

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

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