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Sunday, 24 January 2010

Saudi Shares Slip Most in Six Weeks on International Outlook

Saudi Arabian shares tumbled the most in more than six weeks, led by Saudi Basic Industries Corp. and Samba Financial Group, as President Barack Obama’s plan to rein in banks sent shares tumbling across the globe.

Saudi Basic Industries Corp., the world’s largest petrochemical maker known as Sabic, declined the most in almost a month, while Samba, the kingdom’s second-biggest bank, fell the most since October. The Tadawul All Share Index slipped 1.4 percent to 6,295.92, the biggest decline since Dec. 9.

The decline is due to “the effect of the global markets,” Raj Sinha, head of equity research at HSBC Saudi Arabia, said in an e-mail. “Earnings season was fine, but there wasn’t a case of overall positive or overall negative, so global markets are a key driver today.”