Saudi Shares Decline, Snapping Six-Day Rally; Jabal Omar Drops
Saudi Arabia’s benchmark stock index slid for the first time in seven days, following global markets.
Saudi Basic Industries Corp. (SABIC), or Sabic, the world’s largest petrochemical maker, dropped the most since April 20, while Jabal Omar Development Co. (JOMAR) slid to the lowest level since May 15. Etihad Etisalat Co. (EEC), known as Mobily, fell the most since April 28.
The Tadawul All Share Index (SASEIDX) lost 0.4 percent, the steepest fall since May 13, to 7,333.83 at the 3:30 p.m. close in Riyadh. The Arab world’s biggest bourse has gained 7.8 percent this year.
“The market is taking a cue from some negative macroeconomic news flow last week, particularly regarding IMF comments on the country,” Muhammad Faisal Potrik, an analyst at Riyad Capital, said in an e-mailed response to questions. “Also, as we are approaching the summer season, this is historically a period of subdued activity in the market as people go on vacations.”
The International Monetary Fund said on May 20 it expects Saudi Arabia’s economic growth to slow to 4.4 percent this year from 6.8 percent in 2012 because of lower oil output and government spending.
Sabic lost 0.8 percent to 93.5 riyals, while Jabal Omar fell 2.4 percent to 28.3 riyals. Mobily declined 0.9 percent to 79.5 riyals.
Saudi Arabia’s stock exchange is the only Persian Gulf bourse operating on Saturdays.
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