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 per cent at close, with the index posting its longest losing streak since 2020.
Aramco fell 4 per cent 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”.