Gulf states bonds plunge, Aramco shares weaken further | ZAWYA MENA Edition:
International bonds issued by governments in the Gulf extended losses and regional stocks fell on Thursday after oil prices sank as the United States banned travel from Europe.
The U.S. move follows a World Health Organization declaration that the coronavirus outbreak is now a pandemic.
Saudi Aramco shares declined nearly 4% in early trade on Thursday. Brent crude fell over 5% amid an escalating price war between Saudi Arabia and Russia.
"It's a bloodbath," a Dubai-based fund manager said, adding that the debt sell-off that started on Monday intensified during the week as concerns grew over the economic outlook of the oil-dependent region.
The Saudi stock index fell nearly 5%, while Saudi government dollar bonds due in 2046 shed 2.8 cents and Aramco bonds maturing in 2049 lost 1 cent, Refinitiv data showed. Other Gulf stocks also plunged while the Kuwait bourse suspended trading for Thursday.
Aramco's shares were trading at 28.50 Saudi riyal ($7.6) in morning trade, nearly 11% below their initial public offering (IPO) price. The shares dropped below the December 2019 IPO price of 32 riyals for the first time on Sunday after the collapse of OPEC+ talks on oil output.
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