MIDEAST STOCKS-Saudi blue-chip plunge leads region lower | Reuters

MIDEAST STOCKS-Saudi blue-chip plunge leads region lower | Reuters:

Middle Eastern stock markets fell sharply on Thursday, led by Saudi Arabia, where the index plunged 3.9 percent in its biggest drop since January 2016 as weakness in global bourses and a pull-back in oil prices alarmed investors.

The Saudi index’s slide in heavy trade saw big falls by some of the top blue chips favoured by foreign investors. Petrochemical producer Saudi Basic Industries tumbled 5.1 percent and Al Rajhi Bank sank 4.4 percent.

“Today’s market decline was expected, given the sell-off seen in international markets, led by the U.S. All major markets have witnessed the brunt of this selling pressure, as investors seem to be closing their positions,” said Faisal Hasan, chief business development officer at Kuwait’s KAMCO Investment.