Saudi Stocks Sink as King Signals Changes to Government Spending - Bloomberg Business

Saudi Stocks Sink as King Signals Changes to Government Spending - Bloomberg Business:

"Saudi stocks declined after a speech by the king stoked speculation the Arab world’s biggest economy will probably cut spending next year as the plunge in oil prices pressures the nation’s finances.
The Tadawul All Share Index reversed gains of as much as 0.6 percent to close 1.6 percent lower after King Salman said in an annual address published by the state-run Saudi Press Agency that the country will focus on "raising the efficiency of government spending."
“Now it is becoming clear that the government will be reducing spending and it’s a reality check for investors,” John Sfakianakis, a Riyadh-based Middle East director at Ashmore Group Plc, said by phone. “This means the economy will be slowing down and that will have an impact on the wider market.”"



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