"Panic Selling" Saudi Stocks Crash Into Bear Market Following OPEC Decision

Tyler Durden's picture

It's not just Shale oil stocks in the US that are hurting. Following the OPEC decision to not cut production and squeeze US producers, Saudi Arabia's major stock market index has tumbled into a bear market, giving up all the year's gains. As one analyst noted, "investors are afraid if oil stays where it is, it will negatively impact the government revenues, thus creating potential headwinds on government spending." Dubai stocks - our long-time favorite bubble index - has also been hammered, down over 7% intraday at its worst...



As Bloomberg reports,

Saudi Arabian stocks plunged into a bear market after OPEC took no action to stem a slump in oil, triggering a rout in Middle Eastern equities.


The Tadawul All Share Index (SASEIDX) retreated as much as 6.3 percent, the most since March 2011, before settling 4.8 percent lower at the close in Riyadh.




“Investors don’t like the potential macro backdrop if oil continues to slide, which is being reflected in the markets,” Ali Khan, chief executive officer of London-based BGR Asset Management LLP, said by e-mail. “Investors are afraid if oil stays where it is, it will negatively impact the government revenues, thus creating potential headwinds on government spending.”




“It’s mostly panic selling today,” Tariq Qaqish, head of asset management at Dubai-based Al Mal Capital PSC, said by phone. “Investors are worried about a possible slowdown in government spending, which would affect corporate earnings going forward.”

*  *  *

But apart from that, low oil prices are unequivocally good...right?

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Stoploss's picture


Fuck You Dirtbags!!!  LOL!!!!!!!!!!!!!!!!

flacon's picture

This news is probably bullish, like usual. 

kaiserhoff's picture

You need a stock market to steal sheep?

Headbanger's picture

Yeah, wait til they start liquidating their U.S. holdings to cover their losses there!

Like starting tomorrow morning!!

FieldingMellish's picture

Will they sell their gold, their SPYs or their Treasuries? ... Manhattan and London real estate?

cossack55's picture

They may even sell their R/C 777s.

observer007's picture

OIL: next step 50






A renewed plunge in oil prices is a worrying sign of weakness in the global economy that could shake governments dependent on oil revenues. Yet it is also a bonus for consumers as prices fall at the pump, giving individuals more spending money and…

BrosephStiglitz's picture

Bullish for stocks to go to infinity courtesy of hyperinflation, maybe.

No so "real world" bullish. 

Someone needs to congratulate the politicians, whom, upon bickering like dogs over a bone, managed to harpoon what little shred of economic growth and hope was left in the globalized economy.

Better work on my golf clap while I await the marching orders.

tc06rtw's picture

. . .  If  ONLY  we knew how valuable  $1.00  was going to be 10 years from now!

order66's picture

Tanking oil. Tanking copper.

Yeah, keep buying stocks bulltards.

Bunga Bunga's picture

It's bullish like in 2008.

blabam's picture

Wait till Abdul Bullardi promisis moar QE... 

post turtle saver's picture

it's fucking awesome, let it drop some more

Senduko's picture

I love the smell of impending doom in the morning

Smegley Wanxalot's picture

Surely the House Of Saud will respond to this by beheading a bunch of people for no reason, which will go unnoticed by Uncle Sam because Sammy and Saudi iz peepz.

stant's picture

Yes but it will be some family members in bahston

TheGreatRecovery's picture

...and Saudi corporate bonds?  (I don't know what ticker symbols they might have.)

knukles's picture

There are several, actually.
In each, the buyer must pay the issuer interest or have his eating fingers cut off in place of a bris.
Ticker symbols include:


QQQbacha bereesh*

* look it up, I double dare ya'

spinone's picture

This is one of the biggest problems that US soldiers have had working with the Afghani soldiers.  Not only do they not trust them because of friendly fire, they consider them to be perverts.  Who wants to fight for perverts that might try to kill you?

cossack55's picture

The Brits and the Aussies.

YHC-FTSE's picture

Life just gets funnier by the day. Saudis getting their comeuppance and the dry wit of zhers

cart00ner's picture

These guys are not idiots, which brings to question - is this by design, or has the 1% finally lost controll? 

Keyser's picture

I believe this is payback from the real power, sending the Saudis a message... 

BrosephStiglitz's picture

Seems most likely.  Somebody, somewhere has an axe to grind.

TheGreatRecovery's picture

Omg!  Princes allowances cut?  Unable to import blondes?  Can only afford to import brunettes?  The horror!

no more banksters's picture

"While Riyadh will support officially that reducing prices is not a political move but aims to open new markets, there are indications that oil price is used in the geopolitical field. According to some information, at the same time that Saudi Arabia reduces black gold's price, imposes a very aggressive policy to its customers forcing them to guarantee that they will buy all the quantity at a fixed price, therefore, tries to prevent profit losses."


knukles's picture

Right.... "not a political move, but to open new markets"
Uh huh.
Including making it unprofitable for Nigerians to tap into pipelines to sell for cooking oil and food....FFS!  Whadda buncha tripe.

wmbz's picture

Very bullish! Plenty of fracking bonuses for x-mas!

FieldingMellish's picture

Up until September it looked a lot like the S&P does now...

Make_Mine_A_Double's picture

The new House of Shod is in North Dakota bitchezzzz.

disabledvet's picture

Bismark, North Dakota to be precise.

Hohum's picture


Let's see if repeating that statement in a couple of years leads to hysterical laughter.

king leon's picture

China: fill up my 80 supertankers, "thank you"

tarabel's picture




What the f... I just paid 90 bucks a barrel for this shit and look at the price now. I just overpaid 20 bucks a barrel for 80 supertankers full of overpriced shit.

And I can't find the receipt anywhere.


post turtle saver's picture

they should be ok with that, since the Chinese wouldn't know a contract if it jumped up and bit 'em in the ass

WTFUD's picture

House of Shirt Lifting Saudomy. When this USSA/Israel puppet regime falls we can maybe begin the healing process.

BrerRabbit's picture

How many derivitives are tied to 80 bucks/bbl? Inquiring minds would like to know.

booboo's picture

ISIS is coming for the Royals n' US gets the spoils
Lil Abe wants Mt Olive while courting the cult of Allah
NATO spins , The Kremlin grins and Soros shits a billion.

WTFUD's picture

Poetic Justice booboo

debtor of last resort's picture

Oil price-QE was tapered. Don't they have ppt algo's to fake orgasms?

max2205's picture

Ben, Saudis on line one.....

ms8173's picture

When is the S&P 500 gonna look like that?

razorthin's picture

Head and shoulders, mother fuckers.  When there ain't a central bank to cheat it, the technicals do play out.

FrankieGoesToHollywood's picture

So the stockmarket in the country of rich entitled birthright deadbeats is dropping by 7% because they chose to keep pumping oil.  Who gives a shit and don't you think they thought of that when they decided to keep pumping?  Stock market headlines are yawn.  boring.  The elephant in the room is why they chose to keep pumping.


Middle east stock market...lol.

razorthin's picture

And that elephant just wispered in my ear something in Russian...

yrbmegr's picture

As always with the Saudi's, there are two reasons, the stated reason, and the real reason.  The stated reason is to put shale out of business.  The real reason is to put Russia out of business.