LONDON (Bloomberg) - Saudi Arabian stocks dropped for a fifth day, their longest losing streak in more than a year, triggered by a pullback in the reflation trade globally.
The benchmark Tadawul All Share Index fell as much as 1.5% on Sunday, the most since December, leading losses in the Middle East. Stocks also dropped in Dubai.
The Tadawul fell for a fifth day in the longest losing streak since January 2020, weighed down mostly by banks and food-linked stocks. The index had been strengthening for weeks before the drop, reaching a key level it hasn’t been able to surpass for about two decades.
Other than profit-booking, the decline in Saudi stocks “is mainly due to geopolitical issues” linked to the OPEC+ crisis, said Junaid Ansari, senior vice president of investment strategy and research at Kamco Investment Co. “That said, we don’t expect a correction in the market as these factors are temporary and unless there is an adverse outcome” within OPEC+.