Saudi benchmark declines to lowest in two weeks

Riyadh: Saudi Arabian shares dropped to a two-week low as investors coming back from Eid Al Adha holidays voiced concern 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 November 3. Saudi Basic Industries Corp., the world's largest petrochemicals maker and Al Rajhi Bank, the kingdom's largest publicly traded lender, led the decline.

"Global concerns over the possibility of a tighter monetary policy in China and ongoing Eurozone government debt problems have hit retail investor confidence," said Amro Halwani, a trader at Shuaa Capital.