Israel Exchange Halted After Following Saudi Stocks In Crashing Over 5% At Opening


The first two markets to open following news of the U.S. AAA credit rating cut, Saudi Arabia and Israel, both immediately crashed over 5% after the opening bell.

Here is a prelude to what U.S., European, Asian markets face when they open tomorrow morning.

Earlier Zero Hedge reported Saudi Arabia stocks crashed 5.5% at the market opening on news of the U.S. AAA credit rating cut.

First Response To Downgraded “Non-Event”: Saudi Tadawul Down 5.5%

Those seeking a harbinger of what may be in store for global capital markets come Sunday 5 pm should look to Saudi Arabia where the Tadawul just dropped by over 5% today.



Sayeth the Telegraph: “The Tadawul All-Shares Index closed down 350.43 points 6,073.44 as all shares tumbled following a tumultous week for global markets which was capped by Standard & Poor’s cutting the US credit rating over its $14.3 trillion deficit and debt. “The S&P rating and problems in Europe… have scared investors,” said financial analyst Abdulwahab Abu Dahesh. The Saudi market was the first to react globally to the S&P statement late on Friday, with the start of the trading week in Saudi Arabia, while all other markets remained shut for the weekend. Analysts expect markets in Asia and Europe to follow the Tadawul lower on Monday. “Saudi shares have reacted to two events: sharp drops on Thursday in markets, especially oil, and the S&P cut of the US rating,” economist Mohammed al-Omran told Al-Arabiya news channel.”


Source: Zero Hedge

That news was followed by news Israeli markets suffered the same fate for the same reason. Trading on the Tel Aviv stock exchange was halted after the market opened with a 6% loss in an attempt to calm investor fears over the global financial crisis.

Tel Aviv Stock Exchange opens with 6% losses as global crisis felt in Israel

Losses come as international markets are left reeling by Standard & Poor’s downgrade of U.S. credit rating for first time in history.

The Tel Aviv Stock Exchange opened to major losses Sunday, as indices plunged by more than 6 percent, immediately prompting a series of brief suspensions in trading.

Upon opening, the TA-25 fell 5 percent to 1,100 points; the TA-100 plunged 5.2 percent; the TA-Banking Index dropped 5.3 percent; and the TA Real-Estate 15 fell 6.4 percent.

The losses come as the international markets were left reeling by the announcement Friday that Standard & Poor’s had downgraded the U.S. credit rating for the first time in history.

Trading began for several minutes in Tel Aviv on Sunday, but suspensions began almost at once, as the bourse reverted to what has been dubbed an “English opening.”


Source: Haaretz


Categories: ECONOMY

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