Saudi Arabia reportedly directing selloff of Canadian assets

Saudi Arabia has directed its asset managers to sell off Canadian equities as part of an escalating response to criticism from Canada, according to a report by Financial Times.

The Saudi central bank and state pension funds have sent instructions to overseas asset managers to dispose of Canadian equities, bond, and cash holdings at any cost, the newspaper said, citing unnamed sources.

The report comes a day after the Toronto stock market saw a major selloff from an unknown international dealer, in contrast to gains in other global markets.

The equities selloff comes after Canada’s Global Affairs Ministry expressed concern about the arrest and detention of a female blogger and activist in Saudi Arabia, prompting the kingdom to respond forcefully.

Read: Investment risks for the second half of 2018

Saudi Arabia has declared a freeze on new trade with Canada and recalled thousands of students attending Canadian universities following the tweet last week from Foreign Affairs Minister Chrystia Freeland.

The Saudi foreign ministry has also ordered Canada’s ambassador, Dennis Horak, to leave the country. Saudia Airlines has also announced it will suspend flights to and from Canada starting Aug. 13.

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The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.