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Sun 20 Sep 2015 02:06 PM

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Saudi shares slide on oil, Fed

The main Saudi stock index fell 1.5 percent. Al Rajhi Bank lost 1.4 percent and petrochemicals giant Saudi Basic Industries down 1.6 percent

Saudi shares slide on oil, Fed

Saudi Arabia's stock index fell in early trade on Sunday as unchanged US Federal Reserve rates meant no boost for local banks and weaker oil weighed on petrochemicals. Egypt's market also fell after its central bank kept rates on hold.

The main Saudi stock index fell 1.5 percent as Al Rajhi Bank lost 1.4 percent and petrochemicals giant Saudi Basic Industries was down 1.6 percent.

Some investors had hoped that higher U.S. interest rates would boost the margins of Saudi Arabian banks as their deposits are largely interest-free. But the Fed kept its rates unchanged on Thursday.

United Cooperative Assurance dropped 3.2 percent after the company said on Sunday it had received a claim from Saudi Binladin Group over the collapse of a crane this month at the Grand Mosque in Mecca that killed more than 100 people.

The firm said it had appointed evaluators to determine the damage caused by the accident, adding that its client's policy was more than 98 percent covered by reinsurers.

Egypt's market edged down 0.5 percent with most stocks in the red after the country's central bank also kept its rates on hold, despite some investors' hopes for a cut.

Property developer SODIC, however, edged up 0.3 percent after being awarded a plot of about 31 acres on the outskirts of Cairo.

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