Saudi shares fall as investors bank profit to prepare for Aramco IPO


by   |  VIEW 200
Saudi shares fall as investors bank profit to prepare for Aramco IPO

On Sunday, the 3rd of November 2019, the Kingdom of Saudi Arabia’s main stock index was hit with an en masse whiplash to post its biggest-ever intra-day loss, as investors went through a havoc-scale sell-off to bank fresh cash in a bid to prepare for an upcoming Aramco public listing, while Dubai bourse fell on losses of Emirates NBD.

In point of fact, on Sunday (November 3rd), Saudi Aramco had announced a kick-start of its IPO, though the most profitable company across the globe, Aramco, did not disclose any specific timeframe or an exact number of shares to be sold, nonetheless, sources said on condition of anonymity on Sunday (November 3rd) that the oil giant could offer between 1 per cent to 2 per cent of its entire shares in the local stock exchange.

Meanwhile, addressing to a possibility of further sell-off before Aramco IPO sets forth in to public trading, a director of Middle East and North Africa Investment at Franklin Templeton, Salah Shamma was quoted saying that some local investors were exploring an option to sell stocks further aimed at transforming their investments into Aramco stocks for a long-term benefit.

Quoting statistics, on Sunday’s (November 3rd) Middle East market closure, Saudi’s main index was plunged by 2 per cent and Dubai shed 1.5 per cent after Emirates NBD, the Emirates largest lender, shrugged off 5 per cent, while Egypt extended its winning streak for seventh straight session in a row to wrap-up Sunday’s (November 3rd) market 0.4 per cent higher.

Elsewhere in the Gulf, the Qatari index gained 1 per cent, while the Abu Dhabi index added by 0.1 per cent, following a 0.4 per cent rise of First Abu Dhabi bank.