RIYADH: The Saudi stock market saw a sharp decline on Sunday, losing more than half a trillion riyals in market value due to the escalating trade war between the US and China. The drop was compounded by a fall in oil prices and global market turbulence over the weekend.
According to the report, The Tadawul All Share Index (TASI) plunged 6.1%, falling below 11,200 points, marking its largest decline since May 2020.
Saudi Aramco was hit hardest, losing more than SR340 billion in market value. The decline also spread to other Gulf stock markets, with Qatar, Kuwait, Muscat, and Bahrain all experiencing significant losses.
The downturn followed the announcement by US President Donald Trump of a 10% reciprocal tariff on Gulf imports, effective April 5.
The trade war and tariff imposition have led to widespread market uncertainty, with several Saudi companies, including Takween and Al Amar, hitting record lows.
The Nomu Parallel Market also saw a 5% drop, with shares in 13 companies reaching their lowest levels.
Other major players like Al Rajhi Bank, ACWA Power, and Saudi National Bank also recorded significant losses.
Gulf stock indices and markets across Egypt and Jordan mirrored the losses, with the Kuwait Stock Exchange falling 6.6%, and the Qatar Stock Exchange dropping 5.5%. US markets also experienced sharp declines, with the S&P 500 shedding nearly $2 trillion in value.
The global trading system faces heightened concerns, with experts warning of potential supply chain disruptions and increased raw material prices due to these tariffs.
[Reported by Saudi Gazette]
