Tuesday 16 October 2018

MIDEAST STOCKS-Saudi ends up, institutions appear to mount support operation | Reuters

MIDEAST STOCKS-Saudi ends up, institutions appear to mount support operation | Reuters:

Saudi Arabian stocks plunged early on Tuesday on worries that the furore over the disappearance of dissident Jamal Khashoggi could damage foreign investment, but the market ended up after state-linked funds appeared to mount an operation to support it.

The Saudi index tumbled as much as 4.0 percent in early trade as local retail investors, who account for the vast majority of trading activity, dumped shares.

But the index closed 1.3 percent higher as state-linked funds came in to buy towards the close. Several regional fund managers said the buying was a deliberate effort to prop up the market, in the same way that funds supported stocks during a panic over a Saudi corruption investigation late last year.

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