JEDDAH: Saudi Arabia's stock benchmark Tadawul All Share Index bucked a regional trend to end its two-day winning streak as large-cap stocks fell. “There is pressure from global recovery on petrochemicals and banks are not really recovering,” said a Riyadh-based fund manager on condition of anonymity. “What you're left with is some telecoms and some other sectors.” China's inflation accelerated in May to a 34-month high of 5.5 percent, while retail sales came in marginally higher than forecast and industrial output was slightly lower. Saudi Basic Industries Corp slipped 0.2 percent, Al Rajhi Bank eased 0.7 percent and Mobily dropped 0.3 percent. Saudi Electricity Co. gave back earlier gains and ended 2.1 percent lower. It said Tuesday it will use a SR51.1 billion ($13.63 billion) government loan to finance 70 percent of its projects. The benchmark fell 0.24 percent to 6,568.51 points. “It's obvious we're losing liquidity, there is the summer also, there's nothing much to look forward to. Retail activity is not like it used to be 3-4 years ago,” the fund manager said. Qatar's index QSI closed at a two-week high as local buyers picked up stocks on valuations with further gains expected. The benchmark ended 0.3 percent higher at 8,311 points, its highest close since June 1. UAE markets ended higher as retailers bought property stocks in Dubai, while Kuwait's index closed at a 12-day high. Dubai's index DFM climbed 0.7 percent to 1,568 points, up in four of six sessions, but was down 3.8 percent in 2011. Abu Dhabi's benchmark added 0.07 percent to close at 2,712 points, its highest close since April 24. Bluechips Dana Gas and Aldar Properties gained 1.6 and 0.8 percent respectively. Kuwait's index climbed 0.2 percent to end at 6,330 points, its highest close since June 2 but remained in a tight trading range.
