Saudi stock market sees biggest drop since June due to geopolitical tensions and gold plunge
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Glonghui, February 1st|Impacted by a global metals sell-off affecting local mining stocks, as well as intensified speculation over possible US-Iran-Israel military conflict, the Saudi stock market recorded its largest drop in nearly eight months on Sunday. The Riyadh Tadawul All Share Index plunged 2.6% intraday, marking the biggest single-day decline since mid-June last year. The strengthening of the US dollar late last week exacerbated the plunge in precious metal prices, with material producers led by Saudi mining companies dragging down the broader market. Gold posted its largest single-day drop in forty years last Friday, and silver also fell sharply. Capital goods companies and the banking sector also came under pressure, with geopolitical tensions becoming the main concern for the market. Among other markets in the region, Bahrain and Oman stock markets declined, while Kuwait and Qatar stock markets rose against the trend. Junaid Ansari, Head of Research Strategy at Kuwait's Kamco Investment Company, analyzed that the Saudi stock market's decline was mainly due to geopolitical tensions and profit-taking, while mining stocks fell due to the gold crash. Senior Iranian military officials once again warned over the weekend of possible attacks on Israel, and other Iranian officials have recently signaled preparations for potential attacks.
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