Global sentiment bears down on Saudi shares

Riyadh: Saudi shares dropped for a fourth day, led by Saudi Basic Industries Corp (Sabic), after US and European stocks and crude oil prices declined.

The Tadawul All Share Index fell 64.6 points, or 1.1 per cent, to 6,110.2 in Riyadh, the lowest since July 7. Sabic, the world's largest petrochemical maker, fell 1.3 per cent, knocking about 11 points off the index. Samba Financial Group and Al Rajhi Bank also declined.

"Profit taking that priced in the earning seasons and jittery international markets led to today's decline," said John Sfakianakis, chief economist at Banque Saudi Fransi in Riyadh.

Southern Province Cement Co, the largest cement producer in Saudi Arabia, dropped as much as 4.4 per cent to 66 riyals after its second-quarter profit declined 13 per cent to 185 million riyals (Dh181.1 million, $49 million) on lower sales.

Zain Saudi Arabia retreated as much as 1.2 per cent, the most in two weeks, to eight riyals. The unit of Kuwait's largest mobile-phone company Zain said its second-quarter loss narrowed to 632 million riyals from 857 million riyals a year earlier on higher subscriptions.