Saudi Arabian shares lost the most in three weeks, led by petrochemical companies, after oil fell on signs that fuel demand in the U.S. and China is faltering as economic recovery slows.
Saudi Basic Industries Corp., the world’s biggest petrochemical maker, fell 1.4 percent and its unit Saudi Arabian Fertilizer Co. retreated the most in a month. The 143-company Tadawul All Share Index declined 0.9 percent, the most since July 20, to 6,264.14 at 2:07 p.m. in Riyadh. The Bloomberg GCC 200 Index of Gulf stocks slipped 0.4 percent. Crude oil, up 6.5 percent this quarter, decreased as much as 1.5 percent to $80.30 a barrel. Saudi Arabia holds one-fifth of the world’s proven oil reserves.
“There has been a change in sentiment in petrochemicals following disappointing U.S. economic data and data on Chinese imports,” said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia. The recent rally in crude “may be losing traction as investors remain cautious and await word on tonight’s Fed announcement.”.
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