Saudi Arabian shares fell for the first time in seven trading sessions, led by petrochemical companies and banks, following U.S. markets lower after President Barack Obama’s re-election.
Saudi Basic Industries Corp., the world’s largest petrochemical maker, known as Sabic, dropped the most since Oct. 23. Al Rajhi Bank, the largest Saudi lender by market value, fell the greatest amount in five days. Anaam International Holding Group Co. dropped to the lowest level since Sept. 11 last year after the company announced it was raising capital by 80 percent.
The Tadawul All-Share Index declined 0.3 percent, the steepest fall since Oct. 22, to 6919.06 at the 3:30 p.m. close in Riyadh. The Arab world’s biggest bourse has gained 7.8 percent this year.
“This decline is due to profit-taking after last week’s rise,” Turki Fadaak, head of research at Albilad Investment Co. in Riyadh, said in an e-mail.
U.S. stocks had their biggest weekly decline since June as Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives. The S&P 500 dropped 2.4 percent to 1,379.85 for the week.
Sabic lost 0.8 percent to 90.75 riyals, while Al Rajhi dropped 0.7 percent to 69.75 riyals. Anaam fell 32 percent to 49.30 riyals after the Saudi agriculture and food processing company said it will issue 8.7 million shares at 10 riyals a share.
“The increase in capital will be to expand our food-processing activity,” Hassan Al Yamani, Anaam’s general manager, said in an interview with Al Arabiya television today. “We aim to become one of the best poultry producers in the Saudi market.”
Saudi Arabia’s stock exchange is the only Persian Gulf bourse operating on Saturdays.