DUBAI (Reuters) – Saudi stocks plunged 2.3% as the market opened on Sunday, after attacks on two plants at the heart of the kingdom’s oil industry a day earlier knocked out more than half of Saudi crude output.
Sunday’s decline extended a losing spree for Saudi stocks, which in recent weeks have been hit by expensive valuations, weak oil prices and concerns about the economic outlook.
Drone - Attacks - Yemen - Houthi - Group
The drone attacks were carried out by Yemen’s Houthi group, its military spokesman said on Al Masirah TV.
The index has lost all its gains this year and is down about 18% from its 2019 high of 9,403 points seen in early May.
Sunday - Index - % - Year-to-date
On Sunday, the index was down 1.8% year-to-date.
The index’s earlier gains were fueled by Saudi Arabia’s entry into the MSCI and FTSE Russell’s emerging market indices.
News - Horizon - Index - Inclusion - Story
“There is no real positive news on the horizon with the index inclusion story over,” said Muhammad Faisal Potrik, head of research at Riyad Capital.
“The market was expensive versus the region and other emerging markets, plus second-quarter earnings were not good.”
Gulf - Markets - Attacks - Kuwait - Index
Other Gulf markets also reacted negatively to the attacks, with Kuwait’s premier index down 1.1% and Dubai stocks falling 0.8%.
“Sentiment is negative because...
Wake Up To Breaking News!
Communist, Socialist, Democrat, Republican, at this point, what difference does it make.