Saudi stocks plunged the most in weeks before recovering as a global outage in websites across the internet fueled volatility.
The Tadawul All Share Index fell as much as 1.1% in Riyadh, the most intraday since April 29, before erasing the slump to close up 0.1%.
“People are panic-selling because of the global outage we just witnessed -- there is a global concern,” Abdulmalik Alsalem, an analyst at Samba Capital in the Saudi capital, said as the benchmark index fell sharply.
Several international websites were temporarily unavailable on Tuesday, including the New York Times, Bloomberg News, Reddit Inc., and the U.K. government, after services from content-delivery network Fastly Inc. went down. Saudi shares followed moves in global equities, which also slumped as the outage struck.
Most Saudi stocks have “rallied quite a bit” recently, and investors are “willing to take some profits,” said Pritish Devassy, head of equity research at Al Rajhi Capital. The Tadawul index remains among the best-performing gauges globally this year, advancing 24% in 2021.
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