MIDEAST STOCKS-Budget worries hit Saudi, Egypt soft as Amer resumes trade | 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 hurt its stock market early on Thursday. Egypt's market was soft as the split of Amer Group into two firms dominated trade.
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 1.6 percent early on Thursday. Petrochemical blue chip Saudi Basic Industries dropped 2.0 percent as the government could raise money by lifting subsidised, ultra-low gas feedstock prices for the industry."
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