Saudi Arabia’s benchmark dropped to its lowest level in eight months, as concerns on global markets continued to shake confidence of investors that oil prices may retreat amid signs the global economic recovery is slowing.
The main index (TASI) has closed on Sunday at 7348 points, its largest decline since Aug 2011, falling about 2.3 percent from yesterday’s session.
“Traders are booking gains from this year’s surge following disappointing earnings from petrochemical sector, bluechips has taken the market down in today session,” an analyst told Bikyamasr.com
“The market will most likely rebound in the coming session after the over-selling that happened today,” Mohammed al-Hassan, an analyst in a brokerage firm, added.
Saudi Basic Industries Corp. (SABIC) drops 3.9 percent after going ex-dividend, Saudi Telecom (STC) falls 3.2 percent and Kingdom Holding slides 2.5 percent.
Saudi Arabian Fertilizer, the company known as Safco also part-owned by Saudi Basic, tumbled to the lowest since February after profit missed analysts’ expectations.
Saudi companies started reporting first-quarter financial results this month. Saudi Kayan lost the most since Jan. 17, falling to 17.4 riyals in its 10th day of declines.
Oil prices for May delivery have fallen 0.5 percent last week to $102.83, a drop which certainly was a main reason in today loss.