RIYADH: Saudi Arabian shares fell for the first time in seven trading sessions, led by petrochemical companies and banks, following US markets lower after President Barack Obama’s re-election.
Saudi Basic Industries Corporation, the world’s largest petrochemical maker known as Sabic, dropped the most since Oct. 24. Al Rajhi Bank, the largest Saudi lender by market value, fell the greatest in six days. Anaam International Holding Group Co. dropped to the lowest level since Sept.11 last year after the company announced it was raising capital by 80 per cent.
The Tadawul All-Share Index declined 0.5 per cent, the
steepest fall since Oct.24, to 6908.58 at 1:55pm in Riyadh.
The Arab world’s biggest bourse has gained 7.6 per cent this year.
“This decline is due to profit-taking after last week’s rise,” Turki Fadaak, head of research at Albilad Investment Co. in Riyadh, said in an e-mail.
US stocks had their biggest weekly decline since June as Obama’s re-election set up a budget showdown with the Republican-controlled House of Representatives. The S&P 500 dropped 2.4 per cent to 1,379.85 for the week.
Sabic lost 0.8 per cent to 90.75 riyals, while Al Rajhi dropped 0.7 per cent to 69.75 riyals. Anaam fell 32 per cent to 49.30 riyals after the Saudi agriculture and food processing company said it will issue 8.7 million shares at 10 riyals a share.
“The increase in capital will be to expand our food- processing activity” said Hassan Al Yamani, Anaam’s general manager, in an interview with Al Arabiya television.