The Saudi market fell sharply yesterday, which was attributed by analysts to the general decline witnessed in the global markets despite the exchange not being open for foreign transactions, unlike other Gulf markets like Qatar and UAE which are also expected to fall tomorrow.
Losses reached 3.4% by the middle of trading as all shares declined except for Abdul Latif.
The market closed down by 2.8%, going back to February standards.
In total, 108 firms registered strong declines including 16 shares which fell by the maximum limit of 10%, including 12 insurance firms.
The insurance sector fell by 5.7% except for eight listed companies.
The sharp decline registered by the US and European markets on Friday is the main reason behind the decline of the Saudi market according to analysts.
The failure of the index to cross the 9,750 points mark for the third consecutive session has given a clear signal to investors that the market is heading for sharp declines in the future.
This is exacerbated by geopolitical tension between the US and Iran, which may result in a military action in the region which in turn, will affect the stock markets.
The 15 listed sectors fell today, especially the banking and petrochemical sectors.
Heavyweight Samba Financial Group failed to retain its slight rise and closed unchanged after the bank announced it will distribute cash dividends for the first half of the year.
Other leading shares fell, like Inmaa which lost 5.3% despite topping trading.
Sabic fell by 3.2% while Safco rose by 0.60% following the announcement it made to distribute cash dividends of SR6 for the first half of the year.
Al Mutaqademeh shares also rose, by 0.43%, while Yansab fell sharply by 5.4%, Kayan by 4.8% and Petrorabigh by 3.2%.
The Telecom sector also fell including STC by 2.8%, Zain by 3.9%, and Mobily by 2.3%.
Other sectors like energy, media, transportation, real estate development and investment all also saw a sharp decline.