U.S/Iran complications push Saudi Aramco’s stock down to its lowest since the IPO

Saudi
Arabian national petroleum and natural gas company, Saudi Aramco, went public
on December 11^th with an initial public offering (IPO) that was branded
record-setting in history. Following the first couple of weeks that supported
the share prices to keep up in the market, Saudi Aramco has recently hit the
34.45 Riyals per share level that marks the lowest for the company since its IPO.

Saudi
Aramco Started At 32 Riyals And Went As High As 38.70 Riyals

The
opening price at the time of IPO was set at 32 Riyals while the company
continued to trade significantly higher than the opening level before the early
session on Monday. Following the IPO, Saudi Aramco was announced to have won
the title of the most valuable company that is available to trade publicly with
a market cap of $1.7 trillion. In the prior week, the company had noted
a record high of 38.70 Riyal in the stock market that was followed by a
consistent downward rally that saw the stock losing 11% in the subsequent days
and ended at 34.45 on Monday.

As
per the analysts, the rising complications between the United States and Iran are
affecting the share prices for the Middle Eastern company. The world-renowned,
Saudi Aramco, has lost a total of over $200 billion since mid-December. The
company was seen trading 1.7% lower on Sunday and another 1.2% decline was
observed on Monday.

Investors
Now See It As A Risk To Put Their Money In A Gulf-Based Company

While
the oil prices are expected to continue rising owing to the recent
complications between the U.S and Iran, Aramco is losing
value since investors are now seeing it as a risk to put their money in a Gulf-based
company.

According
to the recent news, Iran has vowed to take stern revenge from the United States
of America for its drone strike that killed Iranian General Qasem Soleimani
along with the Iraqi militia leader. While the Trump Administration had
threatened to hit 52 Iranian sites very fast and hard if Iran responds, Iran
has announced a counter-threat this morning that hinted at burning Israel to
the ground in an act of revenge directed at the USA.

All
in all, the scenario continues to get direr and analysts are expecting the
global financial markets to take a hit amidst all the uncertainty and threats.
While oil prices may continue to rise owing to the falling supply, investments
in the stock market, specifically in the companies located in Gulf or Middle
Eastern countries are likely to extend the decline. As such, the analysts added,
Saudi Aramco can be expected to drop back to its opening level in the upcoming
weeks.