Saudi index falls over US economy concerns

SHARES DOWN: Saudi shares slipped on Tuesday over concerns about the US economy. (Getty Images)

Saudi Arabia's index closed 4.33 percent down due to negative sentiment on US economic fortunes despite assurances by the kingdom's ruler on the soundness of the oil-based economy.

The index lost 207.5 points to 4,588.26 points.

Saudi Basic Industries Corp ended 3.37 percent down, Al Rajhi Bank shed 3.8 percent to 57 riyals and Saudi Telecom closed 4.16 percent lower.

Investors took their cues from international markets in the absence of proper communication from the government on the health of the saudi economy, said Abdulhamid al-Amri, a member of the semi-official Saudi Economic Association think tank.

"Our economy is strong, we have assets that exceed the size of gross domestic product, public spending will rise in 2009 and all of this does not reflect on stocks," Amri said.

"With not enough statements being made by the central bank and planning and statistics department on the state of the economy, people look at foreign markets for clues," he added.

Markets got official confirmation on the state of US economic health late on Monday, when the National Bureau of Economic Research's business cycle dating committee said the economy slipped into recession in December 2007.

Other Gulf markets close lower, tracking global bourses hit by renewed concerns about a deep global recession, with bank and real estate stocks among the biggest losers on regional bourses.

Qatar's main index closed 3.26 percent lower at 5,947.56, with Qatar Commercial Bank taking a 5.84 percent decline.

Oman's benchmark finished down 1.01 percent at 6,168.11 points. National Bank of Oman shed 1.41 percent.

Kuwait's main index closed 1.05 percent lower at 8,763.70. In Bahrain, the main index shed 0.56 percent to 1,943.81, with Al Khaleej Development down 3.03 percent.

The UAE stock markets are closed for the national holiday.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM