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National Petrochemical Tumbles After 2-Month Loss: Riyadh Mover

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Dec. 10 (Bloomberg) -- Saudi National Petrochemical Co. fell to a four-month low after the company known as Petrochem said it had a loss of 264 million riyals ($70 million) in October and November as its polymers plant remains shut.

The stock fell 5.6 percent to 18.6 riyals, the lowest since July 25, at the close in Riyadh. The shares helped push the benchmark Saudi Tadawul All Share Index down 0.6 percent, the most since Nov. 27. About 2.5 million Petrochem shares were traded today, more than five times the three-month daily average.

“The detail of the loss numbers for the two months may have triggered a negative reaction from investors,” Muhammad Faisal Potrik, an analyst at Riyad Capital, said by phone today. “As the plant is still shut down, the loss is only expected to increase.”

Petrochem said yesterday it would delay resuming operations of its polymers plant until January from December. The company suspended productions at the plant Nov. 10 and said at the time the shutdown would reflect on its fourth-quarter results.

Petrochem’s shares have dropped 9.3 percent so far this year, compared with a drop of 7.2 percent for the Tadawul All Share Petrochemical Industries Index and a gain of 5.1 percent for the benchmark stock index. Potrik has a buy recommendation on the stock while three analysts say hold and two say sell.

“I may revisit my assumptions on the stock,” Potrik said.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net