Warnings from the desert : Saudi market tanks
February 28, 2011 Leave a comment
The Saudi stock market is the largest in the Middle East, and it got hammered yesterday, falling 5% or so. A close below 6000 this week will open up a very bearish scenario, with 5750 in danger of not being able to hold the situation. If so 5500, even 5000 could be revisited regardless of the price of oil.
The worry for Asia is a of course significantly higher oil prices for a prolonged period. Many are openly worrying about contagion from the restive Shiite protestors in Bahrain to the oil rich Saudi eastern provinces which are linked to Bahrain by a causeway. If Saudi’s Shiite minority start mobilizing, then all bets are off. At the moment the situation in Bahrain remains a worry, so the risk of oil spikes in coming says is still very high