The last few days have been almost the worst for the Saudi Arabian stock market in 4 years. Between low oil prices, a new King's big social welfare budget, and now "war," it appears this year's dead cat bounce from last year's exuberance is dying rather rapidly. However, what is perhaps even more troublesome for The Kingdom than the net worth destruction and potential blowback from instigating war against the Houthis is the fact that this month saw the largest drop in foreign curreny reserves on record (over 15 years) for the Arab nation... somewhat suggesting capital flight on a scale never seen before in one of the richest states in the world.
Saudi stocks plunging...
[3]
as foreign currency reserves drop by the most on record (in over 15 years)...
[4]
An almost $18bn plunge - the most ever - dragging foreign currency reserves back to the lowest in over 3 years...
and the very recent weakness in the Rial (as war began) suggests the picture will get worse...
[5]
Charts: Bloomberg
