money and business
The Saudi Stock Exchange recorded a sharp decline today, Sunday, the largest in nearly two months after the Kingdom announced its intention to take strict measures to deal with the Corona virus crisis, and reduced the outlook by Moody’s.
After gains over 3 sessions, the Tadawul Stock Exchange declined at the close by 7.4% to 6586 points, which represents the largest decline since March 9, due to the decline of shares of Al-Rajhi Bank 8% and the giant oil company “Aramco” 5.2% (30 Saudi riyals against One share).
Investor sentiment was damaged by the possibility of Saudi Arabia adopting strict measures to deal with the Corona virus crisis and Moody’s reducing, last Friday, the future view of the Kingdom’s classification to “negativity” in light of several factors, including the pandemic and the collapse of oil prices amid the demand for supply, as well as doubts In the Kingdom’s capabilities to achieve debt stability in the medium term.
The Saudi Finance Minister, Mohammed Al-Jadaan, said yesterday, Saturday, that the kingdom will take very strict measures to confront the impact of the Corona virus “which may be painful,” adding that all options are open to deal with the crisis.
Among the measures, he said, are slowing government projects, including mega-projects, to cut government spending.
Al-Jadaan stressed that “Saudi Arabia and the world will not return as they were in the past after this unprecedented crisis and great economic challenges,” stressing that the real impact of the Corona virus pandemic will appear in the second quarter and the following of this year.
Source: Reuters + Bloomberg