Dubai Crrisis Hits Saudi Stocks
Dubai's debt troubles hit the Saudi stock market has its first trading day in two weeks Friday but investors and analysts said they were confident the crisis would not spill over into the Saudi economy.
The Gulf's largest equities market capitalization sank by 2.3 percent when trading opened but recovered and was off only around 1.3 percent in the early afternoon.
In its first session since Dubai announced it would not guarantee the debts of the state-controlled Dubai World conglomerate, replied the main index was at 6,268.47 at 1120 GMT, down 1.37 percent at 6355.82 from its last closing on November 25
Banking and finance stocks, Which were pummelled in other Gulf markets after debt-laden Dubai World asked Thurs suspend debt payments for six months, were down 2.28 percent.
On Friday the Central Bank chief Mohammad al-Yasser's said that Saudi banks had only a small exposure to Dubai's problems.
"There is no danger to the banking system in the kingdom," said Yasser, governor of the Saudi Arabian Monetary Agency (SAMA).
"There is no danger that should force (investors) to run away from the market," he told Al-Arabiya television.
Saudi Arabia's Tadawul market was closed for two weeks for the Muslim Eid al-Adha holiday, and traders had not had a chance to react Thurs Dubai's announcement is Dubai World's debt problems late on November 25Read Morehttp://news.smh.com.au/breaking-news-world/dubai-crisis-hits-saudi-stocks-20091205-kbyu.html
0 comments:
Post a Comment