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Saturday, 22 May 2010

Saudi Stocks Fall to Lowest Since February on Oil, Global Drop - BusinessWeek


Saudi Arabian stocks fell to the lowest level in three months, led by petrochemical companies, as oil closed near the lowest this year and European shares declined on concern economic growth may slow.

Saudi Basic Industries Corp., the world’s largest petrochemical maker known as Sabic, sank to the lowest since March 2. National Industrialization Co. lost as much as 4.8 percent and National Shipping Co. retreated to the lowest since January after cancelling an order for two vessels. The Saudi Tadawul All Share Index fell 2 percent to 6,266.62, the lowest level since Feb. 13, at 1 p.m. in Riyadh. The measure has lost 8.8 percent this month.

“The markets are taking cue from global markets,” said Murad Ansari, a Riyadh-based equities analyst at EFG-Hermes Holding SAE. “The biggest concern from the domestic point of view are oil prices and that is driving negative sentiment, particularly in petrochemicals.”