Saudi stock market begins to fall

Stocks in Saudi Arabia dropped more than any other market in the world yesterday after the kingdom announced austerity measures to fix its budget deficit.

None of the 169 stocks rose on the Tadawul All Share Index (TASI), which declined 3.8 per cent, a drop which marked the highest loss since January.

The biggest drops in stock were found in the hotel and media indexes.

The slump comes a day after the Saudi cabinet cut ministers’ salaries by 20 per cent and scale back financial benefits for public sector employees in one of the most drastic measures yet.

The kingdom has been dealing with the effects of the plunge in oil prices since mid-2014.