RIYADH: Share prices on the Saudi stock exchange dived on Wednesday after a panic selloff on concerns a downturn in emerging markets could hit the oil-rich Gulf kingdom.
The Tadawul All-Shares Index (TASI) dipped 3.1 percent to a five-month low of 7,719.10 points, partly recovering early losses when it shed as much as 4.5 percent.
All 15 sectors and most listed shares ended the day in the red, including market leader and petrochemicals giant SABIC which dropped 4.44 percent.
“The Saudi market came under the impact of the downturn in major emerging markets and dealers are concerned that the trend could hit the kingdom,” said Mohammed Zaidan, chief market strategic of Dubai-based ThinkMarkets.
“There are also concerns that the Saudi economy and other economies in the Gulf may be impacted by the possibility of a global trade war,” he told AFP.
The decline also hit other markets in the region with Abu Dhabi Securities Exchange, the second largest bourse in the Gulf, down 1.1 percent and Dubai Financial Market Index dropping 0.7 percent.
Despite Wednesday’s decline, the biggest single day loss in several months, the Saudi benchmark TASI index is still up 6.8 percent on last year’s close.
The Saudi bourse has a market capitalisation of about $500 billion making it the largest capital market in the Middle East and North Africa.
Source: Brecorder
