SABIC drags down Saudi index

LOWER CLOSE: Saudi's main index ended the day almost 1 percent lower, dragged down by SABIC. (Getty Images)

Saudi Arabia's main index ended lower on Saturday, dragged by Saudi Basic Industries Corp (SABIC), as state-owned mining firm Maaden launches a 9.25 billion riyal initial public offering on Saturday.

SABIC shedded 2.1 percent and Samba Financial Group lost 2.55 percent, pushing the benchmark index 0.94 percent lower to 9,378.34 points.

The drop means the index is down around 15 percent so far this year, the worst in the Gulf Arab region.

"The IPO is absorbing some liquidity from the market but it will absorb more liquidity when it actually lists," said Abdulla Al-Aqil, trader at Samba Financial.

"The impact of the IPO will remain until the last day and the peaks will be on the first day and the last day."

The share sale will close on July 14.

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