World Economy

Tadawul Drops 7%

Tadawul Drops 7%Tadawul Drops 7%

The Saudi stock market plunged nearly 7% in relentless selling sparked by falling oil prices and a decision by Fitch Ratings to cut its outlook for Saudi Arabia’s debt. The Tadawul All-Share Index lost 6.86% to close at 7,463.32 points, nearing support on its December low of 7,226 points. That brought its losses so far in August to 18%—a drop that has erased some $75 billion of market value, Reuters reported. Mohamed Ramady, professor of finance and economics at King Fahd University of Petroleum and Minerals, said: “Unfortunately the Tadawul will continue to be lethargic and might close at around the 6,800-7,000 levels by year end if oil prices do not modestly rebound and signs of a Chinese recovery are seen.