Saudi Arabia’s benchmark stock index fell 7 per cent, plunging to the lowest since September 2009, on concern that political unrest in the Middle East may spread to the kingdom.
The Tadawul All Share Index was down at 5527.93 at 3pm local time and has lost 17.7 per cent since Tunisia’s ex-president Zine El Abidine Ben Ali fled the country amid protests that spurred similar uprisings in nations across the region.
Nomura said in a note:
As contagion spreads in the [region], we acknowledge that the region appears to be experiencing a “1989 moment”, while judging that, as with the former Soviet empire, transition could be uneven and protracted.Libya aside, we currently see no direct threat to oil and gas production in the Middle east and north Africa.However, we acknowledge that potential disruption to output in countries already experiencing protests, and/or contagion to as yet untroubled major oil producers, cannot be ruled out.
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