The benchmark index retreated 4.1% to 8,154.59, the lowest level in more than seven weeks. The decline, which led losses among major benchmarks in the Middle East on Sunday, accelerated in the final hour of trading in Riyadh.
Large caps Saudi Basic Industries Corp., the chemical maker in which Saudi Aramco holds a majority stake, real-estate developer Jabal Omar Development Co. and Saudi Aramco pressured the index the most, sliding 4.5%, 9.6% and 2.3%, respectively. Sabic tumbled even after posting a return to profit in the third quarter that was mainly due to the reversal of impairments associated with Clariant AG.
Saudi Arabia’s coronavirus curve has flattened steadily over the past four months and daily new cases have dropped by more than 90% since peaking in June. The kingdom has reported more than 344,000 cases. Still, analysts and investors cited fears of the return to lockdown to explain the slump.
The sell-off was fueled by “strong rumors that have been denied by the authorities on imposing a ban and suspending services,” Mohammed Al-Shemimry, the general manager of Mohammed Ashemimry Financial Consultants, said in an interview to Ekhbariya TV. “These rumors have definitely affected investors negatively.”
The sell-off was fueled by “strong rumors that have been denied by the authorities on imposing a ban and suspending services,” Mohammed Al-Shemimry, the general manager of Mohammed Ashemimry Financial Consultants, said in an interview to Ekhbariya TV. “These rumors have definitely affected investors negatively.”
Further restrictions would compound the oil-rich country’s economic struggles. Saudi Arabia’s exports fell by a quarter in August compared with a year earlier, weighed down by a drop in oil revenue. Brent crude declined 2.7% last week to $41.77 per barrel.
Al Rajhi Bank, the kingdom’s biggest lender, lost 1.2% after posting a slight decline in profit as impairment charges rose between July and September.
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