Saudi Arabian shares retreated the most since May on concern political unrest could spread in the Middle East after Egyptian protesters clashed with police and the North African country’s president refused to resign.
The Tadawul All Share Index tumbled 5.1 percent, the most since May 25, to 6,354.10 at 2:37 p.m. in Riyadh. All but one of the 146 shares fell. Saudi Basic Industries Corp., the world’s largest petrochemical maker, slumped as much as 5.9 percent. Al Rajhi Bank, Saudi Arabia’s largest publicly traded lender, dropped as much as 4 percent. The cost of protecting Saudi Arabian debt against default for five years soared the most in more than two years yesterday.
“There is a lot of worry looming among investors that we’re going to see a domino effect across the region,” said Amro Halwani, a trader at Shuaa Capital PSC in Riyadh. “That is pushing investors away from equities and straight into cash. It is panic selling across the board.”
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