Saudi shares dropped for a fourth day, led by Saudi Basic Industries Corp. (SABIC), after US and European stocks and crude oil prices declined. The Tadawul All Share Index fell 64.6 points, or 0.66 percent to close at 6,133.96 on Saturday, the lowest since July 7. All sectoral indices were in the red, except for Retail and Media & Publishing, which registered gains of 0.25 percent and 1.60 percent, respectively. SABIC, the world's largest petrochemical maker, fell 1.3 percent, knocking about 11 points off the index. Samba Financial Group and Al Rajhi Bank also declined. “Profit taking priced in the earning seasons and jittery international markets led to today's decline,” said John Sfakianakis, chief economist at Banque Saudi Fransi in Riyadh. Southern Province Cement Co., the largest cement producer in Saudi Arabia, dropped as much as 4.4 percent to SR66 after its second-quarter profit declined 13 percent to SR185 million ($49 million) on lower sales. Zain Saudi Arabia retreated as much as 1.2 percent, the most in two weeks, to SR8. The unit of Kuwait's largest mobile-phone company Zain said its second-quarter loss narrowed to SR632 million from SR857 million a year earlier on higher subscriptions. SABIC dropped 1.1 percent to SR87. Samba fell 2.6 percent, the largest intraday loss since June 5, to SR56. Al Rajhi retreated as much as 1.6 percent to SR75.2. “The Saudi market exhibits strong directional mode from the US market and yesterday's correction is felt today, but not to the same degree,” Sfakianakis said. US, European and developing-nation markets fell this week. The Dow Jones Industrial Average dropped 1 percent, while the Standard & Poor's 500 Index lost 1.2 percent. The Stoxx 600 fell 0.8 percent. The MSCI Emerging Markets Index, which tracks developing- nation equity markets, retreated for a second day yesterday, dropping 0.9 percent to 948.9, the lowest since July 8. Crude oil declined 0.1 percent this week and closed at $76.01 on Friday. Saudi Arabia holds a fifth of the world's proven oil reserves. “Trading is expected to remain volatile, with many market participants on the sidelines during the summer vacations,” said Younas Malick, senior economist at the National Commercial Bank in Jeddah. The volume of shares traded on Tadawul was 73,135,996 compared with this month's daily average of 112.4 million. “Now we need to wait and see SABIC's results expected later this week and the possible short-term momentum it might give,” Sfakianakis said. SABICtraditionally releases quarterly results within a month after the end of a quarter. Al Abdullatif Industrial Investment Co. dropped as much as 5.5 percent, the most since May 25, to SR29.2. The Saudi carpet manufacturer said second-quarter profit declined 16 percent to SR38.4 million ($10 million) from a year earlier on higher costs. National Industrialization Co. rose as much as 6 percent to SR26.7, the highest in almost a month. The petrochemical maker known as Tasnee said second-quarter profit climbed to SR385.4 million from SR91.9 million a year earlier. Qassim Cement Co. retreated as much as 1.1 percent to SR69.75, the lowest since June 22. The Saudi cement and clinker maker said second-quarter profit declined to 135.8 million riyals from SR148.2 million a year earlier on lower prices and falling demand. Saudi Arabian Amiantit Co. dropped as much as 4.8 percent to SR17.1, the lowest since June 1. The maker of fiberglass, iron and pipes said second-quarter profit increased to SR45.6 million from SR40.5 million a year earlier. Yanbu National Petrochemicals Co. dropped as much as 2.6 percent to SR38, the lowest since July 7. The unit of Saudi Basic Industries Corp. known as Yansab was cut to “neutral” from “add” and given a price estimate of SR43.50 per share at Securities & Investment. Separately, Chairman Mutlaq Bin Hamad Al-Morished said the board is yet to decide a date for Yansab's first dividend payout. Zain Saudi Arabia retreated as much as 1.2 percent, the most in two weeks, to SR8.
