Fears over the outlook for the global economy hit Saudi stocks on Saturday as investors moved to limit their exposure to the crisis engulfing the US financial sector and the impact of record oil prices on industry. The drop was led by Prince Alwaleed bin Talal's Kingdom Holding Company, which plummeted 8.16 percent to SR11.25 on the back of news that US investment bank Bear Stearns was forced to seek emergency financing to stay afloat. Alwaleed is the largest shareholder in US lender Citigroup, which saw its share price drop 6.1 percent on Friday following Bear Stearns' announcement. Financial services firm Al-Baha for Development and Investment Company was the day's biggest loser on the Saudi Stock Exchange (Tadawul), dropping 9.82 percent to SR25.25. Falling stocks pushed the Tadawul All Share Index (TASI) down 1.98 percent to 9,695.72 points, its sixth decline in seven trading days. The index has lost almost 6 percent since the beginning of this month and more than 13 percent this year to Saturday's close. Other banks including Al-Rajhi Bank, Riyad Bank and Bank Al-Jazira all suffered losses, with Al-Jazira dropping 7.66 percent to SR57.25. Saudi Basic Industries Corporation (SABIC) was also hit by investor uncertainty, with its share price dropping 2.07 percent to SR177.25. “The outlook for the global economy is worrying investors because a recession would impact oil prices,” said Ibrahim Al-Alwan, deputy chief executive of KSB Capital. “This would affect companies that have direct dealings with global markets, such as SABIC and banks.” The Saudi Stock Exchange is the only one of the seven Gulf markets that trades on a Saturday. Meanwhile, Dubai Financial Market (DFM) said the value of shares bought by foreign investors, or non-UAE nationals, during last week (March 9-13) reached AED1.9 billion ($517 million). The shares comprised 38.2 percent of the total value of stocks traded during the period. The value of shares bought by institutional investors reached AED1.673 billion during last week. The value of stocks sold by foreign investors during the same period reached AED2.205 billion comprising 42.3 percent of the total value of stocks traded during the period, the Dubai bourse said. The net foreign investment on the market reached AED213.3 million during the same period, as aggregate sell. The value of stocks bought by institutional investors during last week reached AED1.673 billion comprising 32.1 per cent of the total value of stocks traded during the period. The value of stocks sold by institutional investors during the period reached AED1.796 billion which constitutes 34.4 percent of the total value of stocks traded during the period. Net institutional investment on the market reached AED123 million during the period. as aggregate sell, the DFM said. __
