WORLD NEWS: SAUDI STOCKS TAKE 5-YEAR RECORD FALL AFTER US TARIFFS

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The Saudi stock exchange was down 6.78 percent on Sunday, the worst daily loss since the Covid-19 pandemic according to state media, after sweeping US trade tariffs sent global markets tumbling.

President Donald Trump’s tariff offensive unleashed this week has sparked a global stock market rout, also raising fears of a general trade war and recession.

In Saudi Arabia, the state-run Al-Ekhbariya television channel reported online that “the Saudi stock index closed trading down (nearly) 7 percent, losing more than 800 points” on Sunday.

The network called it “the largest daily loss in five years” since the early days of the Covid-19 pandemic, with dozens of Saudi companies including oil giant Aramco in the red.

“Trump’s tariffs weighed heavily on global markets, and specifically today on Saudi markets,” Al-Ekhbariya reported.

The utilities sector was down 8.4 percent, banking 6.9 percent, telecommunications 5.9 percent and energy 5.29 percent, it added.

Shares in Saudi Aramco — the crown jewel of the kingdom’s economy — fell 6.2 percent.

State-run financial newspaper Al-Eqtisadiah said that “the Saudi stock market lost more than half a trillion riyals (about $133 billion) in market value during Sunday’s trading”.

A large portion of the losses was attributed to Aramco shares, with the energy giant’s market value falling by “more than 340 billion riyals”, according to Al-Eqtisadiah.

Other Gulf markets also took a dive, reflecting global trends as countries around the world grapple with Trump’s shock tariffs affecting US allies and rivals alike.

According to official news agencies, Kuwait’s primary index fell 5.7 percent, the Qatari stock exchange was down 4.2 percent, and in Oman, the Muscat stock market closed with a 2.6-percent decline.

There was no trade in Abu Dhabi and Dubai, as the United Arab Emirates now has a Western-style Saturday-Sunday weekend.

The uncertainty over trade and manufacturing has helped to fuel a days-long panic in global markets.

Stock exchanges in Europe and Asia closed at a loss on Friday, and analysts expect further declines when they reopen on Monday.

AFP