Saudi Arabia's stocks dip on news of austerity cuts

Published September 28th, 2016 - 04:19 GMT
The royal decree included a 20 percent reduction in ministers' salaries and a 15 percent reduction of salaries for Shoura Council members. (File photo)
The royal decree included a 20 percent reduction in ministers' salaries and a 15 percent reduction of salaries for Shoura Council members. (File photo)

Saudi Arabia’s Tadawul index reversed previous day’s gains, and tumbled more than 3 per cent after the government announced pay cuts for government employees.

The selling was broad-based, with all 169 stocks trading in negative, after the government canceled bonus payments for state employees and cut ministers’ salaries by 20 per cent.

The Tadawul index fell as much as 5,772.14, before trading 2.4 per cent lower at 5,810.22. Alinma Bank fell more than 3 per cent, while Saudi Kayan Petrochemical Co. also fell more than 4 per cent.

 

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