Business | Markets
Saudi shares drop on oil price worries
Sabic and Samba stocks also decline
- Bloomberg
- Published: 00:00 August 22, 2010
Riyadh: Saudi Arabian shares declined to a one-month low, led by petrochemical companies and banks, after oil prices and European markets retreated this week as US economic reports heightened investor concern that the global recovery may be faltering.
The Tadawul All Share Index fell 0.8 per cent to 6,073, the lowest since July 21, at 1.03pm in Riyadh. Saudi Basic Industries Corp, the world's largest petrochemicals maker, known as Sabic, retreated to a seven-week low after oil prices dropped $1.93 in the past week. "The corrective mode is due to global growth jitters that is the dominant guiding force now for the Saudi stock market," said John Sfakianakis, chief economist at Banque Saudi Fransi in Riyadh. Sabic declined as much as 2.1 per cent to 83.75 riyals, the lowest since July 5.
Its Saudi Kayan Petrochemical Co unit dropped as much as 3 per cent to 16.2 riyals, the lowest since October 10. Samba Financial Group, the second-biggest lender by market value, declined as much as 1.3 per cent.
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