Saudi Arabian stocks fell the most in a week, led by petrochemical companies and banks, on mounting concern that Europe’s sovereign-debt crisis will curb economic growth and demand for commodities.
The Saudi Tadawul All Share Index retreated 2.3 percent to 6539.36 in Riyadh today, the biggest drop since May 8. Saudi Basic Industries Corp., the world’s largest petrochemical maker known as Sabic, sank the most since August 2009 and Saudi Kayan Petrochemical Co. fell to the lowest level since April after oil prices slumped. Al-Rajhi Bank also declined.
“Weakness in petrochemicals is driving the market down, and it is mainly related to oil prices,” said Murad Ansari, a Riyadh-based equities analyst at EFG-Hermes Holding SAE. “Oil prices have weakened because of concern about the global economic recovery. There is an expectation of oil demand being affected from what we are seeing in Greece and concerns about its effect on the rest of Europe.”
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