MARKETS

Saudi stocks fall sharply after attacks on oil facilities

Saudi's main index TASI fell nearly 2% after Saturday's attacks. (File photo: AFP)

The Saudi stock market's benchmark index, the Tadawul All Share Index (TASI) was down 1.3 percent in early trading hours on Sunday, following attacks over the weekend on Saudi Aramco's Abqaiq and Hijrat Khurais oil facilities in the Kingdom's Eastern Province.

Energy stocks led the fall with the energy index down 3.35 percent. Petrochemical manufacturing giant Saudi Basic Industries Corp (SABIC) was also down three percent. Saudi Aramco in March signed a share purchase agreement to acquire a 70 percent majority stake in SABIC from the Kingdom's sovereign wealth fund, the Public Investment Fund.

National Petrochemical Co., which is included in the materials index with SABIC, plunged 3.33 percent. Overall, the materials index was down 1.60 percent.

Elsewhere, Saudi Arabia's listed lender Al Rajhi Bank was down 1.17 percent. National Commercial Bank (NCB) was down 0.22 percent.

“What happened today is a temporary hiccup, it is geopolitical and has nothing to do with the economic cycle and business cycle, but the market was overpriced before this effect and we were seeing the market was trending down,” Mazen al-Sudairi, Head of Research, Al Rajhi Capital told Al Arabiya English.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Sunday that the latest attacks on Aramco’s oil facilities has resulted in the halt of an estimated 5.7 million barrels of crude oil supplies, or about 50 percent of Aramco’s production.

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Last Update: Sunday, 15 September 2019 KSA 12:47 - GMT 09:47
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