Saudi, Gulf stocks fall after attack on Aramco oil plants

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Saudi Arabia stocks plunged 2.3% as the market opened on Sunday, after attacks on two plants at 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.

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.

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.

“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.

Other Gulf markets also reacted negatively to the attacks, with Kuwait’s premier index down by 1.1% and Dubai stocks by 0.8%.

Peace PIAK

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