Gulf stock markets dived in early trade on Monday, extending their losses from the previous session amid falling oil prices after Saudi Arabia opened the taps in a price war with Russia.
Saudi Arabia slashed its official selling price (OSP) for crude for April and plans to raise its production significantly next month after the Organization of the Petroleum Exporting Countries’ (OPEC) pact with Russia to curb oil output fell apart on Friday.
The kingdom’s move sent oil prices plummeting around 30%. The squabble among crude producers has jolted investors who already were on edge about the surging costs of coronavirus outbreak.
Saudi Arabia’s benchmark index was down 9.1% at 6,220 points, its lowest in around four years.
State-owned Saudi Aramco 2222.SE, which traded below its initial public offering price of 32 riyals for the first time on Sunday, fell another 10% to 27 riyals ($7.20).
The Dubai index declined 8.8%, its sharpest daily fall since March 2006. Dubai Islamic Bank DISB.DU and Emirates NBD Bank ENBD.DU both shed 10%.
Abu Dhabi’s index was down 7.7%, its biggest intra-day loss since November 2009. Market heavyweight First Abu Dhabi Bank FAB.AD plunged 10%.
The Qatari index dropped 8.6%, the biggest single day loss in more than 11 years. the Gulf’s largest lender, Qatar National Bank QNBK.QA dived 8.7%.
Kuwait’s premier index dived 10% triggering trading suspension for the rest of the session.
Global stock markets also plunged with the main stock indexes in London and Frankfurt dropping by more 8% at the opening. Tokyo closed down 5.1% while Sydney lost 7.3% and Shanghai was off 3%.
Source: Reuters and CBSNews
