Saudi Shares Drop Most in 4 Months as Banks Miss Profit Estimate - Businessweek

Saudi Arabia’s benchmark stock index slid the most in more than four months as local lenders missed third-quarter earnings estimates.

The Tadawul All Share Index (SASEIDX) lost 1.7 percent to 6,682.47 by the 3:30 p.m. close in Riyadh, the sharpest retreat since June 2. Saudi British Bank sank 2.7 percent to a Dec. 21 low of 29.1 riyals. Banque Saudi Fransi (BSFR), partly owned by Paris-based Credit Agricole SA (ACA), retreated 3.3 percent to 29.7 riyals, the biggest drop since Sept. 18 last year.

Saudi British Bank reported a 4 percent gain in third- quarter profit to 656 million riyals ($175 million) on Oct. 10, missing a 826 million riyal forecast. Banque Saudi Fransi posted a 662 million riyal profit the same day, short of the mean estimate of six analysts for 785 million riyals. The Tadawul All Share Bank Index has gained 1 percent this year compared with a 4.1 percent rise in the All Share Index.

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