Saudi Arabian shares decline to two-week low
Monday, 22 November 2010
RIYADH, Nov 21 (Bloomberg): Saudi Arabian shares dropped to a two-week low on investor speculation that Europe's sovereign-debt crisis and China's measures to tame inflation will undermine economic growth.
The Tadawul All Share Index fell 0.9 per cent to 6383.69, the lowest since Nov 3, at the 3:30 pm close in Riyadh. Saudi Basic Industries Corp, the world's largest petrochemicals maker, and Al Rajhi Bank, the kingdom's biggest publicly traded lender, led the decline.
"Global concerns over the possibility of a tighter monetary policy in China and ongoing Euro-zone government debt problems have hit retail investor confidence," said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia.
"Locally, petrochemicals have suffered downward pressure, as post-Eid investors react to recent declines in oil prices."
The Eid Al Adha holidays in Saudi Arabia covered the past week's business days.
Oil fell this week after China ordered banks to raise reserves in a move that may slow growth in the world's largest energy-consuming country. Futures dropped 0.4 per cent, settling at $81.51 a barrel on the New York Mercantile Exchange Friday.
Prices have dropped 4 per cent since Nov 12. Saudi Arabia holds one-fifth of the world's proven oil reserves.
Ireland is edging toward accepting a rescue package that may threaten its low-tax policies and put Irish voters on the hook to repay loans the central bank says may be worth tens of billions of euros.
Sabic declined 2.7 per cent, the most since Oct 16, to 100.25 riyals. Al Rajhi fell 1.9 per cent, the most since Sept 15, to 78 riyals, while Saudi Arabian Fertiliser Co dropped 3.7 per cent, the most in almost six months, to 151 riyals.
"Local risk appetite is likely to remain under pressure" while "uncertainty on global economic issues persists," Halwani said.
Saudi Arabia's index is the only Gulf Arab benchmark tracked by Bloomberg that trades on a Saturday.
The Tadawul All Share Index fell 0.9 per cent to 6383.69, the lowest since Nov 3, at the 3:30 pm close in Riyadh. Saudi Basic Industries Corp, the world's largest petrochemicals maker, and Al Rajhi Bank, the kingdom's biggest publicly traded lender, led the decline.
"Global concerns over the possibility of a tighter monetary policy in China and ongoing Euro-zone government debt problems have hit retail investor confidence," said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia.
"Locally, petrochemicals have suffered downward pressure, as post-Eid investors react to recent declines in oil prices."
The Eid Al Adha holidays in Saudi Arabia covered the past week's business days.
Oil fell this week after China ordered banks to raise reserves in a move that may slow growth in the world's largest energy-consuming country. Futures dropped 0.4 per cent, settling at $81.51 a barrel on the New York Mercantile Exchange Friday.
Prices have dropped 4 per cent since Nov 12. Saudi Arabia holds one-fifth of the world's proven oil reserves.
Ireland is edging toward accepting a rescue package that may threaten its low-tax policies and put Irish voters on the hook to repay loans the central bank says may be worth tens of billions of euros.
Sabic declined 2.7 per cent, the most since Oct 16, to 100.25 riyals. Al Rajhi fell 1.9 per cent, the most since Sept 15, to 78 riyals, while Saudi Arabian Fertiliser Co dropped 3.7 per cent, the most in almost six months, to 151 riyals.
"Local risk appetite is likely to remain under pressure" while "uncertainty on global economic issues persists," Halwani said.
Saudi Arabia's index is the only Gulf Arab benchmark tracked by Bloomberg that trades on a Saturday.