Unrest in Egypt Spooks Saudi Market — Saudi Analysis — GCC Market Analytics
Unrest in Egypt Spooks Saudi Market | GCC Market Analytics

Saturday, 29 January 2011

Unrest in Egypt Spooks Saudi Market

Clearly, the situation in Egypt has made investors in Saudi very nervous.  The Tadawul Index dropped 6.43% today with volume spiking to levels not seen in well over six months.

Saudi Tadawul Index Falls 6.43%

With such a decisive fall you'd expect the other GCC markets to follow Saudi's lead when they open tomorrow.

Unsurprisingly, the countries in the eye of the storm have seen their stock prices sell-off considerably.  The Egypt 30 Index fell by more than 10% on Thursday alone.

Also, oil futures rose by nearly 5% on Friday. That's the biggest one day rise since September 2009.

In short, the financial markets are nervous about the situation in Middle East and the possibility of further contagion in the region.  Things are moving quickly and no one is sure what will happen next. And as everyone is fond of saying, markets hate uncertainty.