Credit Suisse - which tumbled 24% in the previous
session - on Thursday said it would borrow up to $54 billion
from the Swiss central bank to shore up liquidity and investor
confidence after a slump in its shares intensified fears about a
global banking crisis.
Saudi National Bank — the kingdom's biggest lender
— acquired a stake of almost 10% last year after taking part in
Credit Suisse's capital raising and committed to investing up to
1.5 billion Swiss francs ($1.62 billion).
Saudi Arabia's benchmark index fell 0.5%, with Saudi
National Bank tumbling 3.7%, trading at its lowest since
November 2020.
The lender lost almost $27 billion in market value since
Oct. 27 after committing to invest in the embattled Credit
Suisse.
Elsewhere, oil giant Saudi Aramco was down 1.7%.
Dubai's main share index , which snapped a six-day
losing streak in the previous session, slipped back into
negative territory to trade 0.6% lower.
In Abu Dhabi, the index was down 0.7%.
The Qatari index declined 2.1%, weighed down by a
9.4% slide in petrochemical maker Industries Qatar as
the stock went ex-dividend.
Among other losers, sharia-compliant lender Masraf Al Rayan and Commercial Bank slipped 3.9% and 3.1%
respectively. Both lenders were trading ex-dividend.
($1 = 0.9283 Swiss francs)
($1 = 3.7560 riyals)
(Reporting by Ateeq Shariff in Bengaluru
Editing by Tomasz Janowski)
March 16 (Reuters) - Major stock markets in the Gulf
retreated in early trade on Thursday and were on course to
extend their losses further following news that Credit Suisse's
largest investor said it could not provide the lender with more
financial assistance.
A week ago a start-up lender Silicon Valley Bank in
California failed and now a systemic bank in one of Europe's
financial capitals is in enough trouble to seek authorities'
help.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.