Gulf markets plunge on U.S.-Iran tensions, Aramco at lowest since IPO
Reuters
Published Jan 05, 2020 10:40
Gulf markets plunge on U.S.-Iran tensions, Aramco at lowest since IPO
DUBAI (Reuters) - Kuwaiti and Saudi stocks led Gulf stocks sharply lower in late afternoon trade on Sunday in the wake of a U.S. drone strike in Baghdad that killed Iran's military commander.
Shares of oil giant Saudi Aramco (SE:2222) fell 1.7% to their lowest level since listing last month in a record initial public offering (IPO).
Aramco shares dropped to 34.55 riyals a share, the lowest level since it started trading last month.
Iranian military commander Qassem Soleimani, the architect of Tehran's overseas military operations was killed on Friday in a U.S. drone strike on his convoy at Baghdad airport.
The Kuwaiti index, the best performer in the region in 2019, was down nearly 4.1%, while Saudi stocks (TASI) plunged 2.2%.
Dubai stocks (DFMGI) were down 3.1% with property firm Emaar Properties (DU:EMAR) falling 3.7%. The Abu Dhabi index (ADI) fell 1.41%.
Banks also took a beating, with Al Rajhi Bank (SE:1120) down 2% and Samba Financial Group (SE:1090) down nearly 3%.
"A U.S.-Iran war could shave 0.5 percentage points or more off global GDP, mainly due to a collapse in Iran’s economy, but also due to the impact from a surge in oil prices," Jason Tuvey, senior emerging markets economist at Capital Economics, said in a note last week.
Saudi credit default swaps
Regional bond spreads are expected to widen on Monday, when international debt markets open, because of increased political risk, a debt banker said.
Oil prices (LCOc1) jumped to $63.05 a barrel on Friday, their highest level in more than three months, after Soleimani's killing sparked fears that conflict in the region could disrupt global oil supplies.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.