Riyadh : Saudi Arabian shares dropped the most in more than a year as oil prices tumbled on concern Europe's debt crisis will slow the global economic recovery.
The Saudi Tadawul All Share Index retreated 4.4 per cent, the most since February 24, 2009, to 6,516.71 in Riyadh. Saudi Basic Industries (Sabic), the world's largest petrochemical maker, declined the most in nine months as oil futures dropped to the lowest level in 12 weeks.
Saudi British Bank, the lender 40 per cent owned by HSBC, fell to the lowest since January after Shuaa Capital PSC recommended selling the stock. Saudi Arabian Fertiliser, the unit of Saudi Basic Industries, dropped the most in a month after it was cut to "hold" from "buy" at Deutsche Bank AG.
Crude oil for June delivery fell $2, or 2.6 per cent, to settle at $75.11 a barrel on the New York Mercantile Exchange on Friday, the lowest price since February 12. Futures were down 13 per cent for the week, the biggest drop since the week ended December 19, 2008.
Sank
European stocks sank the most in 18 months as concern grew that the region's leaders will be unable to contain the spiralling government debt crisis. European leaders agreed to set up an emergency fund to halt the spread of Greece's fiscal woes, seeking to prevent a sovereign debt crisis from shattering confidence in the 11-year-old euro.
Saudi Basic declined 4.8 per cent, the most since August 19, to 100 riyals. Saudi British Bank lost 2.4 per cent to 45.2 riyals after Shuaa Capital reduced its price target to 41.6 riyals. Saudi Fertiliser declined 2.7 per cent to 134.5 riyals.
