Tadawul index declines 1.29%
Tadawul index declines 1.29%
The Tadawul Index started a sideways walk along the break even line earlier yesterday, abruptly changed its direction toward south after mid of the session and finally closed in the red territory at 6,462.46 points, down 84.73 points or 1.29 percent over the previous close. The TASI went nearly 110 points lower before the closing bell.
All market cap indices closed in the downward district, declining more than one percent for the day.
All sector indices at Saudi stock market closed in red, paring an aggregate of 862 points.
The top decliner was Transport, tumbled 102.7 points or 2.28 percent; Real Estate, Telecom and Insurance sectors followed it, going down more than two percent.
Retail sector suffered least losses comparatively, down 0.16 percent to close at 7,148.77 points.
Top ten heavyweights also closed lower from previous day's level, where Al-Rajhi Bank dipping by 3.06 percent and Etihad Etisalat Co. (Mobily) 2.78 percent. However, Riyad Bank ended without any change.
The market breadth was largely negative as the total number of falling stocks exceeded to the total number of rising stocks by a margin of 132 to 15 and the prices of 8 companies remained unchanged.
Al Sorayai Trading & Industrial Group and Al Sagr Company for Cooperative Insurance were best performing companies of the day, advancing 6.1 percent and 5.1 percent respectively.
On the negative side, decliner's chart was filled by Insurance companies, with Gulf General Insurance and Wataniya Insurance, slipping 5.7 percent for the day.
Iran rial plunges to new lows as US sanctions loom
- The dollar was being offered for as much as 87,000 rials, compared to around 75,500 on Thursday
- The currency has been sliding for months because of a weak economy
DUBAI: The Iranian rial plunged to a record low against the US dollar on the unofficial market on Sunday, continuing its slide amid fears of returning US sanctions after President Donald Trump in May withdrew from a deal on Tehran’s nuclear program.
The dollar was being offered for as much as 87,000 rials, compared to around 75,500 on Thursday, the last trading day before Iran’s weekend, according to foreign exchange website Bonbast.com, which tracks the unofficial market.
Iran’s semi-official news agency ISNA said the dollar had climbed to 87,000 rials on Sunday from about 74,000 before the weekend on the black market, and several Iranian websites carried similar reports.
The currency has been sliding for months because of a weak economy, financial difficulties at local banks and heavy demand for dollars among Iranians who fear the pullout by Washington from the nuclear deal and renewed US sanctions against Tehran could shrink the country’s exports of oil and other goods.
The fall of the national currency has provoked a public outcry over the quick rise of prices of imported consumer goods.
Merchants at the mobile phone shopping centers Aladdin and Charsou in central Tehran protested against the rapid depreciation of the rial by shutting down their shops on Sunday, the semi-official news agency Fars reported.
A video posted on social media showed protesters marching and chanting “strike, strike!” The footage could not be authenticated independently by Reuters.
Hours later, Information and Communications Technology Minister Mohammad Javad Azari-Jahromi said on Twitter that he visited the protesting merchants.
“I will try to help provide hard currency for (mobile) equipment (imports),” Azari-Jahromi wrote, adding: “The merchants’ activity has now gone back to normal.”
Some of the US sanctions against Iran take effect after a 90-day “wind-down” period ending on Aug. 6, and the rest, most notably on the petroleum sector, after a 180-day “wind-down” period ending on Nov. 4.
The rial has weakened from around 65,000 rials just before Trump’s announcement of the US withdrawal in early May, and from 42,890 at the end of last year — a freefall that threatens to boost inflation, hurt living standards and reduce the ability of Iranians to travel abroad.
In an effort to halt the slide, Iranian authorities announced in April they were unifying the dollar’s official and black market exchange rates at a single level of 42,000, and banning any trade at other rates under the threat of arrest.
But this step has failed to stamp out the unofficial market because authorities have been supplying much less hard currency through official channels than consumers are demanding. Free market trade simply went underground, dealers said.