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"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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Sun, 11/30/2014 - 17:34 | 5502349 NaiLib
NaiLib's picture

Beautiful!

Sun, 11/30/2014 - 17:40 | 5502368 Stoploss
Stoploss's picture

LOL!!!

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

Sun, 11/30/2014 - 17:43 | 5502379 flacon
flacon's picture

This news is probably bullish, like usual. 

Sun, 11/30/2014 - 17:51 | 5502402 VATICANT
VATICANT's picture

Filthy dirty Wahabis

Sun, 11/30/2014 - 17:52 | 5502415 kaiserhoff
kaiserhoff's picture

You need a stock market to steal sheep?

Sun, 11/30/2014 - 18:06 | 5502444 Headbanger
Headbanger's picture

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

Like starting tomorrow morning!!

Sun, 11/30/2014 - 18:12 | 5502453 FieldingMellish
FieldingMellish's picture

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

Sun, 11/30/2014 - 19:24 | 5502685 cossack55
cossack55's picture

They may even sell their R/C 777s.

Sun, 11/30/2014 - 18:10 | 5502447 observer007
observer007's picture

OIL: next step 50

latest

http://tersee.com/#!q=oil&t=text

 

 

 

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…

Sun, 11/30/2014 - 18:37 | 5502537 BrosephStiglitz
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.

Mon, 12/01/2014 - 01:43 | 5503679 tc06rtw
tc06rtw's picture

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

Sun, 11/30/2014 - 17:35 | 5502353 order66
order66's picture

Tanking oil. Tanking copper.

Yeah, keep buying stocks bulltards.

Sun, 11/30/2014 - 17:50 | 5502405 Bunga Bunga
Bunga Bunga's picture

It's bullish like in 2008.

Sun, 11/30/2014 - 18:06 | 5502442 blabam
blabam's picture

Wait till Abdul Bullardi promisis moar QE... 

Sun, 11/30/2014 - 17:36 | 5502355 post turtle saver
post turtle saver's picture

it's fucking awesome, let it drop some more

Sun, 11/30/2014 - 17:39 | 5502361 Senduko
Senduko's picture

I love the smell of impending doom in the morning

Sun, 11/30/2014 - 17:43 | 5502373 Smegley Wanxalot
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.

Sun, 11/30/2014 - 20:14 | 5502859 stant
stant's picture

Yes but it will be some family members in bahston

Sun, 11/30/2014 - 17:44 | 5502386 TheGreatRecovery
TheGreatRecovery's picture

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

Sun, 11/30/2014 - 17:53 | 5502417 knukles
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:

 

QQQcamel
QQQgoat
QQQbacha bereesh*

* look it up, I double dare ya'

Sun, 11/30/2014 - 18:03 | 5502435 spinone
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?

Sun, 11/30/2014 - 19:24 | 5502692 cossack55
cossack55's picture

The Brits and the Aussies.

Sun, 11/30/2014 - 19:53 | 5502793 YHC-FTSE
YHC-FTSE's picture

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

Sun, 11/30/2014 - 22:38 | 5503292 cart00ner
cart00ner's picture

Pay that...

Cheers : )

Sun, 11/30/2014 - 17:46 | 5502388 cart00ner
cart00ner's picture

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

Sun, 11/30/2014 - 17:55 | 5502421 Keyser
Keyser's picture

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

Sun, 11/30/2014 - 18:25 | 5502490 reload
reload's picture

Or a last ditch effort to stave off disaster in Japan??

Sun, 11/30/2014 - 18:41 | 5502545 BrosephStiglitz
BrosephStiglitz's picture

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

Sun, 11/30/2014 - 17:49 | 5502392 TheGreatRecovery
TheGreatRecovery's picture

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

Sun, 11/30/2014 - 17:49 | 5502398 no more banksters
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."

http://failedevolution.blogspot.gr/2014/10/the-weapon-of-oil-that-brings...

Sun, 11/30/2014 - 17:56 | 5502423 knukles
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.

Sun, 11/30/2014 - 17:53 | 5502414 wmbz
wmbz's picture

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

Sun, 11/30/2014 - 17:54 | 5502419 FieldingMellish
FieldingMellish's picture

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

Sun, 11/30/2014 - 17:55 | 5502424 Make_Mine_A_Double
Make_Mine_A_Double's picture

The new House of Shod is in North Dakota bitchezzzz.

Sun, 11/30/2014 - 18:09 | 5502451 disabledvet
disabledvet's picture

Bismark, North Dakota to be precise.

Sun, 11/30/2014 - 18:21 | 5502481 Hohum
Hohum's picture

MMAD,

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

Sun, 11/30/2014 - 17:58 | 5502428 king leon
king leon's picture

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

Sun, 11/30/2014 - 19:26 | 5502695 tarabel
tarabel's picture

 

 

China:

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.

 

Sun, 11/30/2014 - 20:46 | 5502972 post turtle saver
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

Sun, 11/30/2014 - 18:09 | 5502448 i_call_you_my_base
i_call_you_my_base's picture

Easily reversed.

Sun, 11/30/2014 - 18:12 | 5502458 WTFUD
WTFUD's picture

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

Sun, 11/30/2014 - 18:13 | 5502463 BrerRabbit
BrerRabbit's picture

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

Sun, 11/30/2014 - 18:38 | 5502540 negative rates
negative rates's picture

Prolly not many, derivatives are a heavy metal kind of thing, precious you see.

Sun, 11/30/2014 - 18:17 | 5502470 booboo
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.

Sun, 11/30/2014 - 19:33 | 5502716 WTFUD
WTFUD's picture

Poetic Justice booboo

Sun, 11/30/2014 - 18:26 | 5502495 debtor of last ...
debtor of last resort's picture

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

Sun, 11/30/2014 - 18:48 | 5502570 max2205
max2205's picture

Ben, Saudis on line one.....

Sun, 11/30/2014 - 18:58 | 5502608 ms8173
ms8173's picture

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

Sun, 11/30/2014 - 19:07 | 5502640 razorthin
razorthin's picture

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

Sun, 11/30/2014 - 19:12 | 5502653 FrankieGoesToHo...
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.

Sun, 11/30/2014 - 19:17 | 5502664 razorthin
razorthin's picture

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

Sun, 11/30/2014 - 19:54 | 5502796 yrbmegr
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.

Sun, 11/30/2014 - 19:35 | 5502729 yrbmegr
yrbmegr's picture

.

Sun, 11/30/2014 - 20:10 | 5502838 Baphod Zeeblebrox
Baphod Zeeblebrox's picture

,

Sun, 11/30/2014 - 19:41 | 5502735 Chuck Knoblauch
Chuck Knoblauch's picture

Obozo's ISIS army drives Mexico, Indonesia, Nigeria, and Turkey into BRICS.

Another great move by Obozo.

 

Sun, 11/30/2014 - 20:12 | 5502844 logicalman
logicalman's picture

May you live in interesting times!

 

Sun, 11/30/2014 - 20:14 | 5502858 williambanzai7
williambanzai7's picture

This has to be bullish for Dubai...

Sun, 11/30/2014 - 20:24 | 5502885 q99x2
q99x2's picture

Arrest Bandar and his skirt.

Sun, 11/30/2014 - 20:58 | 5502917 KuriousKat
KuriousKat's picture

Bring Prince Bandar here Now. He can fix this the way he fixed Alqaeda, Contra, Syria, and Isis. This is just a small bump in the sandune. Nothing to fear praise the all merciful. And get that 600k diamond necklace we gave to the all American skank Hillary, a totally useless puppet!

Does this mean the swiss took a hit too?

I seem to remember last March JP morgan and a few others getting out of the racket for fear of Fed Rules..which I doubt they are afraid of anything as they made the rules.

http://dealbook.nytimes.com/2014/03/19/jpmorgan-to-sell-commodities-unit...

Wall Street banks, facing tighter scrutiny from regulators, are moving to get out of the business of physical commodities trading.

On Wednesday, JPMorgan Chase took a big step in that direction, announcing that it had agreed to sell its physical commodities trading unit to the Mercuria Energy Group, a rapidly growing Swiss trading firm, for $3.5 billion in cash.

The Volcker Rule, part of the sweeping Dodd-Frank financial regulatory overhaul, restricts the ability of banks to trade for their own accounts. That extends to limits on some commodities trading.

The Federal Reserve is also considering limiting banks’ commodities activities to try to reduce their exposure to a potential source of instability.
Related Links

    Documents Document: JPMorgan news release

And the Commodity Futures Trading Commission has subpoenaed Goldman

http://en.wikipedia.org/wiki/Mercuria_Energy_Group
Mercuria was founded in 2004 by Marco Dunand and Daniel Jaeggi, then executives at Phibro—the commodities trader sold by Citigroup to Occidental Petroleum in 2009—and previously at Goldman Sachs. Until 2007, Mercuria was called the J&S Group[6] and focused mostly on oil trading. As they have expanded, they have hired away traders and investment professionals from across Europe, particularly Morgan Stanley, Goldman Sachs, Louis Dreyfus Group[7] and Electrabel in London.[8] Mercuria's 2013 revenue was US$ 112 billion.[9]

It has subsidiaries worldwide, including Navitas Energy in Canada[10] and Vesta Terminal Services in Europe,[11] which operates port logistics, storage and processing facilities in the Netherlands, Estonia, Belgium, and Germany. Mercuria, former owner of Vesta Terminal, entered into a joint venture with Sinopec by selling 50% of the terminals in 2013.[12] In November 2010, Mercuria Energy bought MGM International Group from Morgan Stanley Capital Group Inc. and MGM International LLC.[13] The Miami, Florida-based MGM International Group is developer of international projects to reduce greenhouse gas emissions and trades in global carbon markets.

whew just in time

 

Mon, 12/01/2014 - 07:55 | 5503964 WTFUD
WTFUD's picture

@ KuriousKat

Find the down voter and extract every other tooth with a pair of pliers. Probably a low level troll who'll spill the beans before the first twist.

Sun, 11/30/2014 - 21:23 | 5503090 lester1
lester1's picture

Let's see if the fed does qe4 and bailsout the banks losses due to lower oil prices. These are very interesting times we live in.

Mon, 12/01/2014 - 02:15 | 5503713 Down to Earth T...
Down to Earth Thinking's picture

And better yet with some diesel fuel mixed in from the shit burning detail !

We all live in massive illusions and the markets are one of the grandest of all next to Obamacare and Obama himself, but hey, whos watching or actually counting anything these days ? All is well until the day it isn't ! And I already know I will live to see that day, you can count on it. But that does not mean others will. Ha HA HA 

 

I agree this is not "the" event and nothing more than a blip on the radar screen of what was once called economics and trading. But there will be a period of shorts for those who have the gonads and knowledge. after that who knows , the MBAs and PHDs surely don't. This is a much deeper sign than most imagine from the Saudis and is certainly in concert with other ME elites who competely do not trust Obama and crew. So anything can happen given a little time to play out. Petro dollar hey ? and China, Russia, Iran and others are surely watching very closely and pushing buttons in the background with a big smile or something like that ?  The world is a very tenuous place indeed and oil is the outlier event or destroyer of worlds ? this is a SIGN , Ponder that. 

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