Saudi Aramco shares fall again, reversing IPO gains
Shares in oil giant Saudi Aramco extended their losses for a fourth session yesterday.
The falls reversed about half the gains that accumulated from the rally following the company's historic trading debut, which valued it at $2trn (€1.8trn).
The company's stock fell as much as 1.7pc yesterday before trimming the decline to close down 0.6pc.
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 this month.
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Investors are seeking new catalysts for the stock after it was included in major emerging-market equity benchmarks, analysts say.
Foreigners baulked at the IPO, citing an "expensive valuation" along with concerns from governance to geopolitical issues. Local investors ended up the main buyers.
Aramco's retreat is "quite surprising", given recent performances of global equities and oil prices, said Vrajesh Bhandari at Dubai's Al Mal Capital. (Bloomberg)