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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% at close, with the index posting its longest losing streak since 2020. Aramco fell 4% 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.”
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All 14 sectors on the Saudi Tadawul inex traded lower
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Al Rajhi Bank contributed the most to the index decline, dropping 4.6%
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West Texas Intermediate on Friday dropped to $109.56, shedding 6.8%, the biggest daily drop since March as US Fed Chair Jerome Powell doubled down on his determination to curb the hottest inflation in decades with more aggressive rate hikes
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Fears that rising interest rates and a slowdown in economic growth will lead to demand destruction have gripped the market but in the long run, supplies still look tight, market participants said
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Read more:
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Oil Tumbles Below $110 as Fed Signals More Hawkishness Ahead
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Stocks Suffer Worst Week Since March 2020 on Recession Fears
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European Stocks Post Worst Week Since March as Commodities Fall
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America’s Top 1% Lose $1.5 Trillion on Stocks Before Bear Market
Other Mideast Markets:
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Qatar Exchange Index fell 3.5%, the biggest drop since March 2020; 20 shares fell while none rose
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Boursa Kuwait Premier Market Price Return Index fell 3.3%, the biggest fall since May 12; 25 shares fell while none rose
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Muscat Securities MSM 30 Index closed slightly lower, erasing gains of as much as 0.3%; the index was pushed up by a gain of as much as 9.7% in HSBC Bank Oman after potential merger plan
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HSBC Oman Agrees to Start Initial Talks on Merger; Shares Climb
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Tel Aviv Stock Exchange 35 Index rose 1.3%, with 28 shares rising, and 7 falling, at 3:49pm local time
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Egyptian Exchange EGX 30 Price Index fell for the seventh day, dropping 1.4%
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Bahrain Bourse All Share Index fell 1.1% at close
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NOTE: Dubai and Abu Dhabi stock markets are closed on Sunday for the weekend
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NOTE: Dubai and Abu Dhabi stock markets are closed on Sunday for the weekend
(Updates with closing prices in Gulf markets)
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