Saudi stocks fall over missing journalist
Saudi Arabia’s stock market tumbled in early Sunday trade, as investors worried about deteriorating relations with the international community following the disappearance of a Saudi journalist, while markets in Abu Dhabi and Dubai rose.
Jamal Khashoggi, a prominent critic of Riyadh and a US resident, disappeared on October 2 after visiting the Saudi consulate in Turkey. Ankara believes he was deliberately killed inside the building and his body removed.
Media companies and some technology executives pulled out of a Saudi investment conference because of growing outrage over the disappearance and US legislators have demanded firm action, though President Donald Trump said Washington would be hurting itself if it halted arms sales to Riyadh.
“Concern about the relationship between Saudi and the international community, especially with the US, is causing a big concern for investors,” said a Gulf finance executive, who declined to be named because of political sensitivities.
Saudi stocks fell 4% in the first hour of trade, with the index touching its lowest since early January, after a 5.8% fall last week sparked by a global selloff in equities.
Al Rajhi Bank was down 5.3%. Saudi Basic Industries Corporation, the world’s fourthlargest chemical firm, was down 4%. National Commercial Bank, the kingdom’s biggest bank by assets, was down 5.5%.
Abu Dhabi’s stock index rose 0.2%, largely lifted by property stocks. Eshraq Properties rose 1.6%, and Aldar Properties rose 1.2%. Dubai’s index DFMGI was up 0.3%, lifted by real estate and contracting companies shares.
Drake & Scull International, a Dubai-based contracting firm, jumped 5.4%, and Arabtec Holding rose 1.1%.
Emaar Properties, which is Dubai’s biggest listed developer, rose 1%.
Amlak Finance, a mortgage firm, declined 1%. /