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Saudi Aramco shares extended their losses for a fourth session. reversing about half the gains accumulated from the rally following the company’s historic trading debut.
The oil giant’s stocks lost as much as 1.7% on Sunday. before trimming the decline to close 0.6% down at 35.30 Saudi riyals. When shares hit the intraday low. Aramco had pared more than half of its gains since it became the world’s biggest initial public offering.
Investors are seeking new catalysts for the stock after it was included in major emerging-market equity benchmarks. analysts say. Foreigners balked at Aramco’s IPO. citing what they deemed to be an expensive valuation along with concerns that ranged from governance to geopolitical issues. Local investors ended up being the main buyers.
Aramco’s retreat is quite surprising. given recent performances of global equities and the oil price. said Vrajesh Bhandari. senior portfolio manager at Al Mal Capital in Dubai. It could be a bit of profit-taking and some risk-off before retail investors close books ahead of year-end. he said.
Saudi Arabia’s main index. in which Aramco is the second-biggest member. ended slightly higher. Elsewhere. equity gauges were mostly up. with Kuwait’s index leading gains while Abu Dhabi’s fell 0.3%. the most in the region.
