Saudi Aramco News: First Big Test After Massive IPO - Bloomberg:
Saudi Aramco’s status as an oil-producing behemoth located in one of the world’s most turbulent regions always marked it as likely to suffer bouts of volatility.
But few could have expected the stock to face so stern a test less than a month after the company’s historic $25.6 billion initial offering.
The world’s most profitable company tumbled 1.7% Sunday, the most in more than two weeks, as the U.S. killing of Iran’s most prominent general last week triggered fresh concern of a wider conflict in the Gulf region. While Aramco performed better than Saudi Arabia’s benchmark Tadawul index, the sudden rise in geopolitical tension comes just as the end of the stabilization period for the shares nears following the Dec. 11 sale.
“The risks will remain over the near term as both the United States and Iran aim threats at one another,” said Jameel Ahmad, a markets analyst at FXTM in London. The drop in Aramco shares “is a natural reaction to the coordinated risk aversion that has swept global sentiment since the events at the end of last week.”
Saudi Aramco’s status as an oil-producing behemoth located in one of the world’s most turbulent regions always marked it as likely to suffer bouts of volatility.
But few could have expected the stock to face so stern a test less than a month after the company’s historic $25.6 billion initial offering.
The world’s most profitable company tumbled 1.7% Sunday, the most in more than two weeks, as the U.S. killing of Iran’s most prominent general last week triggered fresh concern of a wider conflict in the Gulf region. While Aramco performed better than Saudi Arabia’s benchmark Tadawul index, the sudden rise in geopolitical tension comes just as the end of the stabilization period for the shares nears following the Dec. 11 sale.
“The risks will remain over the near term as both the United States and Iran aim threats at one another,” said Jameel Ahmad, a markets analyst at FXTM in London. The drop in Aramco shares “is a natural reaction to the coordinated risk aversion that has swept global sentiment since the events at the end of last week.”
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