by Bespoke Investment Group
While the Saudi government would have us believe that everything is fine and dandy in their country, recent action in the Saudi stock market suggests otherwise. As shown in the chart below, the Saudi Tadawul All Share Index has declined for 13 straight days, and it is now down more than 20% since peaking in January.
Back in late January, the TASI saw a one-day decline of over 6% on 1/29 when tensions began to escalate in Egypt. When things settled down in Cairo, the TASI rebounded back above its 50-day moving average, but it then began to roll over again when tensions moved to Libya. Watching the charts must be a popular past time in Saudi Arabia, because once the index broke below its January lows, the bottom literally fell out of the index. With the March 11th Day of Rage coming up in Saudi Arabia next week, are traders in this market anticipating a replay of Egypt or Libya?
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