30/08/2009
Aug 30, 2009:
Saudi Basic Industries Corp (SABIC) claws back some of the previous day's losses, lifting Saudi Arabia's index .(TASI).
SABIC rises 0.7 percent, but remains down 2.1 percent since Monday.
Saudi blue chips are muted, with few of the big names moving. SABB falls 0.9 percent and Kingdom Holding loses 1.1 percent, with the ongoing fallout from the debt defaults of troubled Saudi conglomerates Ahmad Hamad Algosaibi & Bros (AHAB) and Saad Group weighing on shares.
"The worry is that although we know the total exposure, we don't know the specifics for each bank, especially those in Saudi Arabia," says Mohammed Yasin, Shuaa Securities chief executive.
"But the initial shock has now been built into stock prices."
Saad and Algosaibi are embroiled in a legal battle in the United States after defaulting on debts, with some bankers warning the total cost of writedowns may hit $22 billion and affect around 120 banks.
Saudi Arabia's index (.TASI) climbs 0.04 percent to 5,741 points, reports Reuters.
