The Saudi Arabian stock market started off the week by dropping 3.8 per cent Saturday. Analysts said it was an indication that the exchange, which recently opened its doors to foreign investors, was becoming more vulnerable to the financial crisis.
“The Saudi market is more prone to foreign institutional investment now since it has opened its doors, so we do expect more volatility [in the market] and less stability,” said Ayman el Saheb, the director of operations at Darahem Financial Brokerage in Dubai. “At the end of the day, it is a correlation with what is happening in global markets.”
Shares on US markets fell to 12-year lows on Friday on rising investor concerns as the government increased its stake in Citigroup, one of the largest commercial banks, to 36 per cent. The bank, whose shares have fallen more than 90 per cent in the past year, has already received US$45 billion (Dh165.28bn) from the US government.
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