DUBAI: Stock markets in the Middle East fell sharply on Sunday, with Saudi Arabia’s index hitting a more than three-year low, after the Organization of the Petroleum Exporting Countries’ (OPEC) pact with Russia to curb oil output fell apart on Friday.
A three-year pact between OPEC and Russia ended in acrimony after Moscow refused to support deeper oil cuts to cope with the outbreak of coronavirus and OPEC responded by removing all limits on its own production.
The collapse of the deal sent Brent futures tumbling 9.4 percent, the biggest daily percentage fall since December 2008, to settle at $45.27 a barrel.
Saudi Arabia’s index closed down 8.32 percent at its lowest since November 2017, with most of its constituents trading in the red.
Saudi Aramco tumbled 9.1 percent, its sharpest percentage fall in a day, to SR30 ($8). The stock traded below its initial public offering price of SR32 riyals for the first time. Al-Rajhi Bank and the country’s largest lender National Commercial Bank fell 7.1 percent and 10 percent respectively.
Saudi Arabia, which slashed its official selling price (OSP) for crude for April, plans to raise its oil production above 10 million barrels per day next month, sources told Reuters.
Kuwait’s index dived 10 percent, its second biggest-ever single day loss. The Dubai index dropped 7.9 percent, its sharpest intra-day fall since October 2008.
Abu Dhabi’s index closed down 5.4 percent, its biggest intra-day percentage loss in more than five years. Market heavyweight First Abu Dhabi Bank plunged 6.7 percent.
The Qatari index shed 2.9 percent as the Gulf’s largest lender, Qatar National Bank, and Industries Qatar decreased 4.7 percent and 3.6 percent respectively.
Egypt’s blue-chip index was down 4 percent, with most of its constituents closing in the red. Market heavyweight Commercial International Bank Egypt fell 4.7 percent.