Tadawul holds steady on Saudi reshuffle

29 April 2015

Stock market shows muted reaction to top-level government and Aramco changes

  • Index rose on opening, then fell marginally
  • Petrochemicals industry shares continued to perform well

The Saudi Stock Exchange (Tadawul) showed little change after the announcement of top-level political appointments in the kingdom.

The index rose on opening, then fell marginally, by 0.3 per cent or 25 index points, by 1:30pm Saudi time.

King Salman bin Abdulaziz al-Saud appointed Prince Mohammed bin Nayef as crown prince, and made his son, Prince Mohammed bin Salman, deputy crown prince.

The monarch named Saudi Aramco CEO Khalid al-Falih health minister and chairman of Aramco, replacing Ali al-Naimi, who remains oil minister. A new CEO has not been announced for the state oil firm.

Petrochemicals industry shares continued to perform well, gaining 0.3 per cent. The stability suggests Saudi investors do not expect disruption.

The exchange is capitalised at about $530bn and is the Arab world’s largest exchange. It is scheduled to open to qualified foreign investors in June.

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