Saudi Basic Industries Corp. (SABIC) dropped to a six-week low as brent crude fell below $100 a barrel for the first time since July and before the world’s largest petrochemicals maker posts first-quarter results.
Shares of the company known as Sabic lost 1.1 percent to 92.5 riyals, the lowest level since March 6, at the close in Riyadh. The stock has tumbled 5.9 percent in the past four days, the biggest such drop in a year. Sabic unit Saudi Arabian Fertilizer Co. (SAFCO) on April 14 reported first-quarter profit that missed analysts estimates.
Brent crude, down 10 percent this year, retreated amid signs global economic growth may slow, curbing fuel demand. China’s economy grew 7.7 percent in the first quarter, its statistics bureau said yesterday, less than the 8 percent median forecast in a survey of 41 economists. Gold prices tumbled 14 percent in the previous two days.
“The global markets don’t look particularly encouraging, gold prices are going down, oil is down,” Mahmood Akbar, an analyst at Riyadh-based NCB Capital, said by telephone. “Some investors are booking profit.”
Sabic shares had gained 9.5 percent this year before their four-day retreat. First-quarter profit is expected to fall 10 percent to 6.53 billion riyals ($1.74 billion), according to the mean estimate of eight analysts compiled by Bloomberg.
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