Published: Fri, January 10, 2020
Markets | By Otis Pena

Saudi Aramco shares hit another new low following missile attack

Saudi Aramco shares hit another new low following missile attack

Prince Khalid said he met with the U.S. secretaries of defence and state during the trip, which had been scheduled following the USA drone attack that killed top Iranian military commander Gen. Soleimani.

Saudi Aramco shares have been trending lower since the days after the company pulled off the biggest IPO in history in December.

Aramco shares dropped to 34.55 riyals a share, the lowest level since it started trading last month.

The looming USA war with Iran, which became more likely last week after Trump's ordered assassination of Iranian military commander Qasem Soleimani, was likely on the minister's mind; Iran and Saudi Arabia have been in a low-level conflict for decades, including a long-running proxy war in Yemen.

The Kuwaiti index, the best performer in the region in 2019, was down almost 4.1%, while Saudi stocks plunged 2.2%.

S&P 500 hits high, US-Iran fears fade
The spotlight will next move to Friday's labour report, and economists expect it to show employers added 160,000 jobs last month. Benchmark U.S. crude gained 43 cents to $60.04 per barrel in electronic trading on the New York Mercantile Exchange.

"The Secretary underscored that the United States does not seek war with Iran and remains committed to de-escalation, " the statement said.

Dubai stocks were down 3.1% with property firm Emaar Properties falling 3.7%.

Banks also took a beating, with Al Rajhi Bank down 2% and Samba Financial Group down almost 3%.

Regional bond spreads are expected to widen on Monday, when global debt markets open, because of increased political risk, a debt banker said.

Although oil prices hit a seven-month high on Friday and continued to soar early on Monday, these high price levels are unlikely to persist for long if global oil supplies are not disrupted, Goldman Sachs said in a note on Monday, carried by Bloomberg.

Like this: