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Saudi Stocks Extend Slide as Oil Weighs on Sentiment: Inside EM

Saudi Stocks Extend Slide as Oil Weighs on Sentiment: Inside EM

Stocks listed in Saudi Arabia extended last week’s declines as oil’s losing streak weighed on market sentiment. Equities across the Middle East were also mostly lower.

  • The Tadawul All Share Index drops 1.9%, falling past its 50-day moving average
    • Al Rajhi Bank -2.2%; SNB -2%; Aramco -1.9%; Sabic -2.4%
  • “Lower oil prices, driven by concerns over another bout of Covid-related demand weakness, have drawn the breath from the Tadawul rally,” said Hasnain Malik, the Dubai-based head of research at Tellimer Research
    • “No Saudi internal fundamentals have changed, but high valuations versus history means there is going to be high sensitivity to any negative change in the external environment”

Market snapshot as of 4:30 p.m. in Dubai:  

  • Dubai Financial Market General Index falls 0.2%
  • Abu Dhabi’s ADX General Index declines 0.2%
  • Kuwait’s Premier Market index slips 0.3%
  • Qatar’s QE Index drops 0.3%
  • Egypt’s EGX 30 retreats 0.6%

Top EM Stories:

  • Saudi Arabia is keeping the home fires burning for regional IPOs, readying what could be the biggest sale of shares by a stock-exchange operator since Euronext NV
  • Reliance Industries scrapped a plan to sell a 20% stake in its oil-to-chemicals unit to Saudi Arabian Oil Co.
  • Yemen’s Shiite Houthi rebels said they used drones to attack Aramco’s refineries and King Abdullah airport in Jeddah, as well as targets at the Abha airport

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