Saudi Arabia’s shares headed for the biggest drop in more than three weeks as oil prices fell, raising investor concerns that the world’s top oil exporter may reduce the size of a $500 billion government stimulus.
Nama Chemicals Co. (NAMA), a developer of industrial projects in chemicals and petrochemicals, plunged 6.5 percent. Al Rajhi Bank (RJHI), the kingdom’s biggest lender by market value, fell the most since June 19 in intraday trading. The Tadawul All Share Index lost 1.8 percent, poised for the biggest drop since June 2, to 6,579.00 at 1:13 p.m. in Riyadh. The measure has lost 16 percent this quarter, the worst since the fourth quarter of 2008. The Bloomberg GCC 200 Index retreated 0.6 percent.
“Oil below $80 just creates a psychological effect that the government will reduce spending and the economy will be affected,” said Marwan Shurrab, assistant fund manager and chief trader at Gulfmena Investments Ltd in Dubai. The drop “is more related to global growth and global demand for commodities,” he said.
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