11/08/2010
Tadawul index declines
Saudi Arabian shares lost the most in three weeks, led by petrochemical companies, after oil fell on signs that fuel demand in the US and China is faltering as the economic recovery slows.
Saudi benchmark Tadawul All Share Index (TASI) lost 0.85 percent, the most since July 20 , to close at 6,264.01 on Tuesday.
Saudi Arabia index made its largest drop for three weeks, tracking declining oil prices.
Saudi Basic Industries Corp., the world’s biggest petrochemical maker, fell 1.7 percent and its unit Saudi Arabian Fertilizer Co. retreated the most in amonth.
Crude oil, up 5.5 percent this quarter, lost 2.1 percent to $79.74 a barrel at 5:11 p.m. in Riyadh. The Kingdom holds one-fifth of the world’s proven oil reserves.
Oil futures prices fell on Tuesday, but pared losses in late trade after the Federal Reserve said it would keep interest rates low and take other steps to cut borrowing costs and encourage economic recovery.
Earlier, oil had been slipped after data showed China’s crude oil imports slowed in July and as the dollar rose.
Front-month ICE Brent crude fell $1.39 to settle at $79.60 a barrel. “There has been a change in sentiment in petrochemicals following disappointing US economic data and data on Chinese imports,” said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia. The recent rally in crude “may be losing traction as investors remain cautious and await word on tonight’s Fed announcement.”
Elsewhere in the region, Dubai index fell 0.3 percent to 1,496 points.
Abu Dhabi benchmark slipped 0.1 percent to 2,509 points.
Kuwait measure rose 0.1 percent to 6,701 points.
Qatar index climbed 0.1 percent to 7,126 points.
Bahrain index rose 0.5 percent to 1,408 points.
Oman index edged up 0.05 percent to 6,350 points.
Kuwait’s Zain rose to an 11-week closing high on Tuesday after its second-quarter profit soared, spurred by its sale of African assets.
