Sunday, 15 September 2019

Saudi, Gulf stocks fall in first session after attacks on Aramco oil plants

Saudi Basic Industries (SABIC), the kingdom’s biggest petrochemicals firm, was down 2.4%
Saudi Aramco
Saudi stocks fell sharply on Sunday, after attacks on two plants at the heart of the kingdom’s oil industry a day earlier knocked out more than half of Saudi crude output. Sunday’s decline extended a losing spree for Saudi stocks, which in recent weeks have been hit by expensive valuations, weak oil prices and concerns about the economic outlook.
The drone attacks were carried out by Yemen’s Houthi group, its military spokesman said on Al Masirah TV. The index opened down 2.3% but later pared some losses. At 0914 GMT, the Saudi market was down 1.3%. The index has lost all its gains this year and is down about 18% from its 2019 high of 9,403 points seen in early May. The index’s earlier gains were fueled by Saudi Arabia‘s entry into the MSCI and FTSE Russell’s emerging market indices, but analysts said that effect had faded in recent weeks.
Saudi Basic Industries (SABIC), the kingdom’s biggest petrochemicals firm, was down 2.4% after it said it had curtailed feedback supplies by about 49% following the attacks. Aramco has agreed to buy a 70% stake in SABIC from the state Public Investment Fund in a $69.1 billion deal that is awaiting regulatory approvals. Other petrochemical companies such as Yanbu National Petrochemicals Co and Kayan also announced significant reductions in feedstock supplies…

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