Tadawul bears worst monthly loss in 6 months

The Tadawul All Share Index (TASI) lost 7.5% or 618.25 points and closed at the level of 7,628.34 points, posing its highest losses since August 2019.

GCC stock markets are anxious about the outbreak of the coronavirus (COVID-19) which is pushing the downward trend, economic consultant Ibrahim Alfailakawi told Mubasher.

Closing schools and announcing a number of cases in Arab countries led to more concerns by investors, the analyst added, noting that the current situation will not last for a longtime as global markets are adapting to the epidemic, unless more cases are announced, which could prompt more selling in stock markets.

Saudi Arabia has temporarily suspended travel to the holy cities of Makkah and Medina for umrah, as well as the entry of tourist visa holders coming from countries endangered by the new coronavirus (COVID-19).

Tadawul’s market capitalization decreased to SAR 8.43 trillion ($2.25 trillion) by the end of February’s trade, compared with SAR 8.75 trillion ($2.33 trillion) in January, decreasing by 3.7% or around SAR 324.3 billion ($86.5 billion).

Traded values decreased by 15.1% to SAR 71.6 billion in February, compared with SAR 84.38 billion in January, with an average turnover of SAR 3.58 billion ($954.7 million) per session.

Nineteen market sector indices recorded losses during the month, as utilities, telecom, and materials fell by 14%, 10.8%, and 9.88%, respectively.

On the other hand, healthcare and software rose by 1.78% and 18.5%, respectively.