Petchems lead Saudi index lower

UPDATE 4: Saudi index TASI ends lower for the first session in three.
Petchems lead Saudi index lower
MARKET REPORT: Omans index was the only gainer in the Gulf Arab region in early trade. (Getty Images)
By Reuters
Tue 22 Jun 2010 10:29 AM

Petrochemical stocks led Saudi Arabia's index TASI to a lower close for the first session in three as oil prices declined below $77 per barrel on Tuesday.

The index TASI ended 1.4 percent lower at 6,364 points.

Saudi Basic Industries Corp (SABIC) was the top loser among bluechips, ending 3.6 percent lower. Saudi Kayan Petrochemical Company fell 2.9 percent and Yansab an affiliate of SABIC, dropped 2.8 percent.

"SABIC has seen some strong gains in the past few sessions and we saw some profit booking today," said Ali Khan, managing director and head of brokerage at Arqaam Capital.

Aabar Investments ended 9.8 percent higher recovering after early panic selling sent the stock lower soon after Abu Dhabi's bourse opened.

"The initial action was on the news it is considering delisting, but there was no clarity on it," said Shiv Prakash, analyst at MAC Capital Advisors, adding that there was strong resistance close to AED1.84 a share.

The stock ended trading at AED1.8 a share.

Aabar said the board will meet on June 24 to discuss a date for an extraordinary general meeting to consider delisting from the bourse.

Abu Dhabi and Dubai bourses both ended lower in correlation with weakness in global markets.

Dubai's index fell 1.4 percent to 1,542 points led by Emaar Properties which declined 3 percent.

Qatar's bourse QSI ended 0.5 percent lower at 7,088 points while Kuwait's KWSE and Bahrain's BAX both rose.

Banking stocks led Oman's bourse lower.

Bank Dhofar fell 2.6 percent and Bank Sohar dipped 1.8 percent as Muscat's main measure slipped 0.8 percent to 6,208 points, retreating after three days of gains.

"After yesterday's rally, speculators are squaring their positions and thus there is selling pressure across the board," said Osama Ibrahim al-Qinna, head of brokerage at Oman Arab Bank.

"As the market remains jittery, turnover is lower," he added. (Reuters)

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