Saudi Arabia’s Stock Market posted the biggest loss in 6 years as the bourse reacted to further declines in the price of oil, according to reports.
The TASI fell 7.3 percent to 7,330 points, its lowest level since June 2013. Dozens of stocks fell by their daily 10 percent limits, indicating further potential weakness, Arab News reports. “Investors are concerned that dwindling oil revenues could prompt the government of the world’s largest oil exporter to reduce spending, which could in turn slow growth in the wider economy and hurt corporate profits.”
However, Saudi Arabia will continue spending on development projects and social benefits in its 2015 budget despite “challenging” global economic conditions, Finance Minister Ibrahim Alassaf said on Wednesday according to the SPA.
“Economists believe Saudi Arabia’s 2015 budget plan, which Alassaf said he had submitted to the Supreme Economic Council and is expected to be announced on Monday, will forecast a deficit for the first time since 2009,” Reuters reports.
