Saudi Arabian Stocks Tumble as Oil, Rates Roil Mideast Equities

(Bloomberg) —

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Saudi Arabia’s benchmark stock index headed for the longest losing streak since 2020, following a global sell-off in equities last week and after oil fell the most in three months on Friday. Stocks in Qatar and Kuwait also declined.

Gulf equities are selling off due to the impact of 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.”

Tadawul All Share Index dropped as much as 3.8% to the lowest since January; the benchmark has retreated for the past six days
All 14 sectors traded lower, while over 200 out of 211 stocks on the benchmark fell
Aramco contributed the most to the index decline, decreasing 3.1%
- 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
- 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
- State-owned Aramco is still the world’s biggest listed entity with a market value of $2.18 trillion compared with $2.13 trillion for Apple

Oil Tumbles Below $110 as Fed Signals More Hawkishness Ahead
Stocks Suffer Worst Week Since March 2020 on Recession Fears
European Stocks Post Worst Week Since March as Commodities Fall
America’s Top 1% Lose $1.5 Trillion on Stocks Before Bear Market

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Other Mideast Markets:

Qatar Exchange Index fell as much as 3.5%, the biggest drop since March 2020; 20 shares fell while none rose
- Industries Qatar contributed the most to the index decline, decreasing 5%
Boursa Kuwait Premier Market Price Return Index fell 3.3%, the biggest fall since May 12; 25 shares fell while none rose
- Kuwait Finance House contributed the most to the index decline, decreasing 2.7%
Muscat Securities MSM 30 Index gains 0.3%, pushed up by a 9.7% jump in HSBC Bank Oman after potential merger plan
HSBC Oman Agrees to Start Initial Talks on Merger; Shares Climb
- Also read: Foreign Direct Investment in Oman Climbs 19% in 1Q
Tel Aviv Stock Exchange 35 Index rose 1.1%, with 27 shares rising, and 8 falling
Egyptian Exchange EGX 30 Price Index fell for the seventh day, dropping 0.5%
Bahrain Bourse All Share Index fell 1.5%
NOTE: Dubai and Abu Dhabi stock markets are closed on Sunday for the weekend