Saudi stocks dived 17.2 per cent in August to lead a slide in other Gulf bourses which came under pressure from a sharp decline in oil prices and China’s economic woes.
The AFP reported that global equities were hammered last week as risk-averse investors dumped shares on spreading panic that the flagging Chinese economy – the world’s second largest – could spark a new worldwide recession.
The August decline in the Gulf wiped out all gains made by its seven stock markets since the start of the year, with all dipping into the red.
The Gulf states depend heavily on oil as a main source of income, and China is a major trading partner and the most important market for Middle East crude.
The decline also came following a string of negative economic reports that said the six Gulf states will lose around $300bn in oil revenues and end 2015 with a budget shortfall.
The Saudi Tadawul All-Shares Index dropped 2.2 per cent on Monday to end the month on 7,522.47 points. It is 9.7 per cent down on the year.
Dubai Financial Market Index was the second biggest loser, dipping 11.6 per cent in August to close the month on 3,662.56 points. The index is 1.7 per cent lower than last year’s finish.
Oman dived 10.5 per cent, Abu Dhabi shed 7.0 per cent and Kuwait slumped 6.9 per cent. All of them are below the 2014 close.
Source : Punch