Saudi Stock Market Falls 6.4%.

[Joanne98]

Source: WSJ

After mostly shrugging off the political upheavals in North Africa in recent weeks, the Saudi stock market finally took fright on Saturday, with the key index dropping 6.4% on concerns about Friday’s dramatic events in Egypt.

“Egypt dominated the headlines here and will clearly shape the direction of regional markets until some sort of resolution is found,” notes a trader at Credit Suisse. Another trader in Riyadh said it was unsurprising that the Saudi market finally succumbed to nervousness about Egypt, given the impact Friday’s events had on Wall Street and other major markets.

The Egyptian government was forced to deploy the army after demonstrators fought pitched battles with police, beating them back and setting fire to the headquarters of the Egyptian ruling party. And oil producers like Saudi Arabia may be growing nervous about the free passage of their oil through the Suez Canal, the Credit Suisse trader said.

Saudi companies with big operations in Egypt were especially vulnerable on Saturday, with Savola Group trading 10% lower at SAR27.



Read more: http://blogs.wsj.com/dispatch/2011/01/29/saudi-stock-market-falls-64/

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I did't know the Saudi stock market was open on Saturday.

[Dennis Donovan]

1. Their "sabbath" is Friday...

...so, I guess, their "Monday" is today?:shrug:

[fedsron2us]

2. What is the unemployment rate for young males in Saudi Arabia

The official figure is 10% but the true total is probably much higher

Despite its much vaunted oil wealth there is a stratum of real poverty in the country that is not just confined to the cheap immigrant labour that the Saudi elite use to do much of their less appealing work (nb the latter make up 25% of the population). In fact the whole stability of the country depends on oil prices staying high. The House of Saud and investors in the country probably have every reason to be worried about what might happen now popular unrest is sweeping across the Arab world.

[JackRiddler]

5. What is it in the US?

Definitely higher than 10% but that alone doesn't make a revolution.

The flexibility and power given by oil wealth, the extended tribal networks of the rulers, the deep divides between natives and immigrants, the feudal culture, and the lack of metropolitan centers where the revolution would gather would suggest Saudi is not likely yet to go the Egyptian way.

[Lint Head]

3. The Saudis are next.

9/11 was carried out by Saudis. All of the hijackers were Saudis. Not to make an obvious connection but Karma has no allegiance. The population there are not happy with the wealthy and we are their ally.

[NeoConsSuck]

7. The next could be Sudan

http://english.aljazeera.net/news/africa/2011/01/2011130131451294670.html

[customerserviceguy]

4. There's a lot of money to be made in a peaceful Middle East

Not so much in an unsettled one. I wouldn't read anything into this about the fate of the Saudi royal family.

[yurbud]

6. Is there a stock we can buy and short to help?

[NeoConsSuck]

8. Here ya go.

be careful, I've never come out ahead when I shorted. I zig, they zag. You know the story :)

http://finance.yahoo.com/q?s=GAF&ql=0

[yurbud]

9. I didn't mean to make money on their collapse--I meant to CAUSE it.