Saudi Markets Lose $134 Billion Due to Reciprocal Tariffs

The Saudi stock market lost more than $134 billion in market value, with the market value of the shares of Saudi Aramco accounting for bulk of the losses declining by over $90.63 million, during Sunday’s trading.

As many as 34 companies on the Saudi main market Tadawul and parallel market Nomu have hit record lows since the start of trading on Sunday and through mid-session, impacted by the trade war and the drop in oil prices to their lowest levels in four years.

According to the Financial Analysis Unit at Saudi Arabia’s Arabic daily Al-Eqtisadiah, the Saudi stock market index (TASI) fell 6.1% at the start of today’s session, marking the largest decline since May 2020. This follows the collapse in global markets since Thursday (April 4), when the US President Donald Trump announced reciprocal tariffs on his trading partner nations and scores of other countries.

According to the Saudi daily’s report, the companies that recorded their lowest prices included Takween, Al Amar, Arabian Drilling, Gulf General, Saif Gallery, First Mills, Fourth Mills, Arabian Mills, Al Nahdi, Intaj, Addis, Americana, Talco, Dar Al-Ma’at, Derayah, Redan, Smasco, Fakieh Health, Lumi, Nice One, Naqi, and Herfy Foods.

Nomu Parallel Market           

The parallel market’s index also fell 5% by mid-session, losing 1,600 points, marking its second decline after five sessions of gains.

The parallel market recorded a decline in the shares of 13 companies to their lowest prices and they included Taqat, Obeikan Glass, Arabica Star, Jana, Amwaj International, Taiba, Manawala, Ratio, Al Battal Factory, Lamasat, Sultan Food, Shamou Al Madi, and Hadab Al Khaleej.

Aramco’s stock led the market’s decline, falling 6.2%. Al Rajhi Bank, ACWA Power, and National Commercial Bank (NCB) followed, with declines ranging between 5% and 6%, the report said.

Half an hour after the start of trading, trading volume reached approximately $590 million, with a trading volume of 130 million shares. This liquidity was concentrated in Al Rajhi, Aramco, and STC shares.

Gulf Bourses

Gulf stock indices and the Egyptian and Jordanian stock exchanges began the week with collective losses, while the Kuwait Stock Exchange recorded a decline of 6.6% and the Qatar Stock Exchange index fell 5.5%, the largest declines since March 2020.

The Muscat Securities Market index fell by 2.1%, while the Bahrain Stock Exchange index fell by about 2.5%.

However, details on the UAE stock markets including Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) were not available as they were closed during the weekend the trading will begin on Monday.

In Egypt, the main EGX30 index fell by about 3.6% during today’s trading. Trading on 11 stocks on the Egyptian Exchange was suspended for 10 minutes after they fell by more than 5%. The Jordan Stock Exchange declined by about 2%, with shares of 60 companies declining and only 8 rising, while shares of 18 companies remained stable, the report said

Worst Since Pandemic

Globally, investors are bracing for a gloomy day after markets return from the weekend on Monday, amid concerns about retaliation for US tariffs and questions about bargain hunters’ ability to weather the expected market downturn.

Wall Street suffered heavy losses following the announcement of US tariffs, marking one of the worst days for stocks since the peak of the sell-off during the coronavirus pandemic. More than $2 trillion was wiped off the value of the S&P 500, which fell by about 5%.