Wow. Saudi, UAE, Kuwait, GCC Stocks Just Crashed! Malaysian Financial Markets Under Pressure

Since October, I have been saying here that market crashes have become a real time event.

Last Friday, I pointed that oil prices just melted down. And because the oil crash came during closed markets of oil producing nations, the belated response of the latter has equally been horrific.

Anyway last night’s GCC’s stock market crash compounds on the earlier weakness, which I described last night:

Friday, as OPEC the deadlock persisted, oil prices crashed! West Texas Crude collapsed 10.18% and Europe’s Brent dived 9.77%! Friday’s meltdown compounded on the losses of oil prices for the week, specifically at 13.98% and 12.95% respectively!

Oil producing Norway’s all share index missed the region’s risk ON boat and instead got walloped by 7.13% this week.

GCC states, whose markets were closed during oil collapse, have already been drubbed due to prior oil price weakness. For the week, Saudi’s Tadawul plummeted 3.75%, UAE’s DFM sank 1.5%, Qatar’s Qatar Exchange plunged 3.72%, and Oman’s Muscat fell 2%.

Now the GCC equity market crash...

Kuwait Stock Exchange –3.35% last night, down –18.65% from peak 

Saudi Arabia’s Tadawul –4.76% last night, now in a bear market –22.5% from the peak. 

It’s interesting to see how fast this has happened. The Tadawul raced to record highs last July only to give back almost all gains up this year in barely 4 months. Easy up, fast down.

UAE’s Dubai Financial –4.74%; estimated loss of 19+% from peak—now at the portal of a bear market.

Oman’s Muscat  -6.21%; estimated peak to current loss at 13.8%. Again easy up, fast down

QATAR QE –4.28% estimated p-t-t loss of 11.8%. Bearish head and shoulder formation.

Bahrain BSE seems to have escaped the carnage.

Well selling pressures seems to have landed in ASEAN markets.

The USD-Malaysian ringgit has been pummeled (down 1.53%) as of this writing. Now at 5 year highs (or ringgit at 5 year lows)

Chart from google finance. Malaysia’s KLSE seems feeling the heat too and has been down –1.98% also as of this writing.

Malaysia’s 10 year yield just soared!

Interestingly Malaysia’s commodity exports (mining and agriculture) accounts for only 22.9% of total exports. Yet Malaysia’s financial markets seems embattled. Why? Has pressures oncommodity exports been exacerbating incipient signs of deflating domestic bubbles?

Interesting. All these have been happening despite the PBoC-BoJ-ECB stimulus.

Remember easy way up can also extrapolate to a rapid decline. Or manias can instantaneously turn into crashes. 

Real time events in the GCC shows the way.