JEDDAH: Saudi Arabian shares dropped the most in a week, led by petrochemical companies and banks, after the International Monetary Fund cut its US growth forecast for 2011. The Tadawul All Share Index dropped 0.68 percent to 6,501.25 points at close. Saudi Basic Industries Corp., the world's biggest petrochemicals maker, and Al Rajhi Bank, the Kingdom's largest publicly traded lender by market value, led the losses. Banque Saudi Fransi fell for a fourth straight day. "Investors are concerned that demand for petrochemicals will drop after the IMF cut its projection for US growth," Turki Fadaak, an analyst with AlBilad Investment Co., said in Riyadh. Saudi Arabia's petrochemical exports in April made up 31 percent of the Kingdom's overall non-oil exports valued at SR12.3 billion, according to data published on the Department of Statistics and Information's website. Saudi Arabia holds one- fifth of the world's proven oil reserves. Banque Saudi tumbled 1.6 percent to SR43.20, the lowest price since March 15, extending its four-day loss to 4 percent. Petrochemicals maker SABIC dropped 1 percent, the largest intraday loss in a week, to SR101.75. Al Rajhi weakened 0.7 percent to SR73. The US economy will grow 2.5 percent this year and 2.7 percent in 2012, down from the 2.8 percent and 2.9 percent projected in April, the IMF said yesterday. The Washington-based fund sees the world economy expanding 4.3 percent this year, down from 4.4 percent in April.
