The Saudi stock market continued to decline for the eighth straight session, with the benchmark Tadawul All Share Index (TASI) plunging 2.5 percent in the first two hours of trading on Monday.
The benchmark index was down 214 points to 8,460 points, driven lower by majority of stocks. Nearly 45 million shares, valued at SAR 1.1 billion, were traded during the period.
Since the last week, the benchmark index lost nearly 680 points.
TASI’s current fall is in line with the decline in regional and global stock markets, impacted by rising regional geopolitical tensions and deteriorating sentiment globally following US President Donald Trump's China tariffs announcement.
“Obviously, we are seeing red across the board. In Saudi, it is because of a mix of geopolitics that are impacting oil prices and the MSCI review, which is set to release its decision today (so typically profit booking),” Issam Kassabieh, senior financial analyst at Menacorp Financial Services, told Argaam.
Today’s sell-off in Saudi and other GCC markets are on the back of escalating geo-political tensions. Most markets, particularly Saudi, have had a strong start to the year and investors will use this opportunity to book gains and perhaps re-enter at lower levels. Globally, as well markets have been weak on US-China trade tensions, so no real trigger for markets to not fall today,” noted Nishit Lakhotia, head of research at SICO Bank.
Blue chip SABIC fell 2.1 percent to SAR 112.40, while heavyweight lender Al Rajhi slipped 3.3 percent to SAR 66.90.
Gulf Union hit limit down at SAR 10.98, as the insurer reported a net loss before zakat of SAR 36.2 million for the first quarter of 2019.
SPM was the top gainer, rising 9.9 percent to SAR 10.18 following the company’s net profit after zakat and tax rising nearly fivefold in the first quarter of 2019.
Write to Parag Deulgaonkar at parag.d@argaamplus.com
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