MIDEAST STOCKS-Budget jitters hurt Saudi Arabia; CDS rising again | Reuters:
"Worries that Saudi Arabia may cut
subsidies and state spending and raise taxes to cover its budget
deficits in an era of cheap oil once again hurt its stock market
on Thursday, with a negative effect on neighbouring markets.
The International Monetary Fund said on Wednesday that
Riyadh was considering a wide range of fiscal reforms - many of
which could hurt corporate profits, at least initially - to cope
with a budget gap that would total well over $100 billion this
year.
That pushed the Saudi stock index down 2.7 percent on
Wednesday and it slid a further 1.3 percent on Thursday.
Petrochemical blue chip Saudi Basic Industries dropped
1.2 percent; the government could raise money by lifting
subsidised, ultra-low gas feedstock prices for the industry."
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