Arab Markets Impacted by Global Downturn

Arab Markets Impacted by Global Downturn

Wednesday, 7 February, 2018 - 12:45
An investor monitors a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016. REUTERS/Faisal Al Nasser
Riyadh - London - Shujaa al-Baqmi and Asharq Al-Awsat
The Saudi stock market fell in early trade on Tuesday but it outperformed most markets in Asia, Europe, US and the Middle East.

The Saudi stock index closed the trading at 7,466 points with a decline of 1.6 percent (121 points), continuing its fall for the third day in a row, amid trading that reached an estimate of SAR4.6 billion (USD1.2 billion).

This coincided with a sharp drop in US markets on Monday, encountering one of their worst losses. Middle East stocks also fell Tuesday in response to the plunge of global stock markets.

Dubai’s index fell 1.5 percent while Abu Dhabi’s index sagged 0.9 percent. That of Qatar lost 2.1 percent.

Egypt indices ended trading Tuesday with collective losses amid sales by Arab and foreign investors and local funds. Stock brokers noted that the drop in Egyptian stocks is unjustified and falls under the psychological impact left by global markets’ performance on investors.

Further, Saudi stock markets are witnessing a remarkable rise in local institutional ownership and foreign investors, in a clear indication of the attractiveness of the Saudi market for investment capital.

In the same context, Tadawul revealed its weekly report on investor ownership – the market value of stocks reached SAR1.7 trillion (USD453.3 billion) end of the week, a rise of 1.2 percent compared to last week’s market value. Total ownership of “foreign investors” stood at 4.44 percent of total market capitalization as it was the case on Feb. 1, 2018, a rise of 0.05 percent compared to last week. 

Editor Picks