Saudi Basic Industries (Sabic) the world’s largest petrochemical maker, declined after saying it won’t pay dividends for the first half of the year, pushing Saudi Arabia’s Tadawul All Share Index to its biggest drop in two weeks.
Sabic shares tumbled 8%, the most in three months, to SAR60.50 following the comment today by Vice President Mutlaq al-Morished on Dubai-based Al-Arabiya television. The company yesterday said second-quarter profit fell 76% from a year earlier as crude prices plunged.
Sabic said on 14 March it planned to pay a cash dividend of SAR3 a share for 2008. The company, 70% owned by the Saudi government, has cut jobs and reduced output as the worst recession since World War II weakened demand for plastics used for everything from packaging to car bumpers. Profit was also hurt by the slump in crude prices from a high in July 2008.
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