Dubai: Saudi Arabia’s Tadawul witnessed its sharpest daily fall in the year, joining the stock sell-off in that originated in the US after President Donald Trump questioned the pace of rising interest rates.
The Tadawul index fell as much as 4.1 per cent, to 7,511.23 from the previous low, the sharpest fall in the year.
The index closed the week 3.81 per cent lower at 7,536.61. Energy and material sub-indices were the worst hit with a more than 4 per cent decline.
“Global equity markets are going through a period of consolidation and this is led to an indiscriminate sell-off yesterday — this is impacting our regional equity markets including Saudi Arabia,” Charles Henry-Monchau, managing director, chief investment officer and head of Investment Management at Al Mal Capital.
The index, which has gained 5.1 per cent since January 1, had been on an upturn in line with rising oil prices, which recently hits its highest level in four years. The sell-off didn’t spare other regional markets, although to a limited extent.
The Dubai Financial Market General index closed 1.97 per cent lower at 2,755.32, while the Abu Dhabi Securities Exchange general index closed 0.93 per cent lower at 4,967.77.
“Today’s reaction in regional markets is in sync with what we witnessed in US overnight, which affected not just the regional markets; globally most markets are deep in red. Sharp rise in interest rates spooked equity investors in US, triggering the sell–off,” Nishit Lakhotia, head of Research at SICO Bank said.
The MSCI emerging market index was down 3.21 per cent at 954.05.