Chairman Reliance Industries Mukesh Ambani loses the crown of Asia’s richest man to Jack Ma, owing to the recent decline in international oil prices.
According to the Bloomberg Billionaires Index, “Chinese billionaire Jack Ma, the founder of e-commerce major Alibaba Group, has toppled Mukesh Ambani to get the top spot in Asia”.
The continuous concerns of impact of the novel coronavirus coupled with the recent decline in the oil markets have erased $5.8 billion from the Reliance Industries chief’s net worth and took him to No. 2 on Asia’s Richest people list.
Mukesh Ambani’s net worth slides to $41.8 billion, whereas Jack Ma stands at $44.5 billion. Internationally, Ambani is the 19th richest man just behind Jack Ma who is at the 18th rank. Amazon CEO Jeff Bezos continues to enjoy the No.1 spot of world’s richest man even though he lost $5.6 billion on Monday.
Oil markets plunged on Monday with oil prices across variants declining around 30 %, the biggest free fall since the 1991 Gulf War. The slide in oil comes after Saudi Arabia shocked the market and started a price war with Russia to claim a higher market share as the market is experiencing decline in the demand of oil first time in more than a decade.
Reliance Industries’ shares dropped 12% on Monday, the most since 2009, extending this year’s decline to 26%. The stocks of Reliance Industries dipped to Rs 1,094.95 per share. At 1.34 pm, it was trading at Rs 1,100, lower by Rs 170.05 or 13.39 per cent from its previous close. The stock fell most since October 2008.
This also raises concerns whether Reliance Industries Limited will be able to cut its net debt to zero by 2021 as it pledged by Ambani.