Saturday 19 May 2012

Saudi Shares Decline on Lower Oil Prices, European Debt Concerns - Bloomberg

Saudi Arabian shares headed for their lowest close in almost three months, led by petrochemical companies and banks, as falling oil prices and concern over Europe’s debt crisis stoked bets that fuel demand could drop.
Saudi Basic Industries Corp. (SABIC), the world’s largest petrochemical maker known as Sabic, fell to the lowest intraday level since Jan. 31. Al Rajhi Bank (RJHI), the kingdom’s largest bank by market value, declined to the lowest level since Feb. 4. The Tadawul All Share Index (SASEIDX) dropped 1.2 percent 7,008.62, set for the lowest close since Feb. 21, at 11:37 a.m. in Riyadh. The 152-member index is up 9.2 percent this year.
Oil retreated to a six-month low in New York yesterday on concern Greece will have to leave the euro, compounding Europe’s debt crunch and curbing fuel demand. Crude oil for June delivery fell $1.08 to $91.48 a barrel on the New York Mercantile Exchange yesterday, the lowest settlement since Oct. 26. That took their weekly decline to 4.8 percent. Saudi Arabia is the world’s top oil exporter.

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