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Wed 27 Oct 2010 10:48 PM

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Saudi Shares fall 1st time in week as oil, emerging markets drop

Shares fall due to slowdown in international markets which is putting pressure on buyers

Saudi Shares fall 1st time in week as oil, emerging markets drop
SHARES SLID: The traders say oil market is taking a breather putting additional pressure on petrochemicals (Getty Images)

Saudi Arabian shares retreated for the first time in a week as oil declined and emerging markets stocks slid on speculation a possible Federal Reserve asset - purchase program will fail to meet investor expectation.

Saudi Basic Industries Corp, the world’s largest petrochemical maker known as SABIC, ended a four day winning streak. National Industrialization Co, the petrochemical maker known as Tasnee, fell 1 percent.

The Tadawul All Share index retreated 0.4 percent to 6,309.92 at the 3:30 p.m. close in Riyadh. Dubai’s benchmark index lost 0.7 percent and the MSCI emerging markets index dropped 1.5 percent.

“The slowdown in international markets is putting pressure on buyers,” said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia. “The oil market is also taking a breather putting additional pressure on petrochemicals.”

Crude oil for December delivery slid as much as 2.1 percent to $80.81 a barrel on the New York Mercantile Exchange. Oil declined for the first time in four days as traders bet stockpiles in the US are rising and the dollar strengthened, curbing investor demand for commodities.

The six nations of the Gulf Cooperation Council, including Saudi Arabia and the UAE, supply about a fifth of the world’s oil.   

The Tadawul All Share Petrochemical Industries index fell 0.3 percent, snapping four days of gains. SABIC retreated 0.5 percent to $25.3. National Industrialization dropped to $8.2, the lowest since Oct. 16.

The Bloomberg GCC 200 Index of Gulf region stocks slid 0.3 percent. Abu Dhabi’s measure and Bahrain’s measure lost 0.1 percent. Qatar’s QE index and Oman’s MSM 30 index slipped 0.3 percent. The Kuwait SE Price index advanced 0.3 percent. (Bloomberg)


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