Saudi Arabia's Index Tumbles to Three-year lowSource: www.export-egypt.com 12/14/2015, Location: Middle East |
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Saudi Arabia's index tumbled to its lowest level since late 2012 after oil slumped to near 11-year lows and investors dumped stocks. Saudi's benchmark plunged 3.5 to 6,709 points. The index is down 32 percent from a 2015 peak of 9,897 on 30 April, according to Reuters.
Brent has fallen 47 percent over the same period. The kingdom's largest stock by market value, Saudi Basic Industries (SABIC) fell 2.9 percent, heading for its sixth straight decline. Saudi Telecom Co (STC), the country's biggest telecommunications company, dropped 1.1 percent, despite the Kuwaiti market regulator approving STC's takeover plan for Kuwait's Viva. The retail sector was down 4 percent, with Al Hokair and Al Othaim losing 4 and 2 percent respectively. "We believe oil price volatility along with potential budget cuts will indirectly impact discretionary spending," Saudi's NCB Capital said in a note. Recent retail data showed signs of weakness in the sector, with consumers shopping less and cutting back on spending at stores. "The lower growth in sales transaction values is similar to the time of the global financial crisis and decline of oil prices in 2008," NCB Capital's note added. |
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