Saudi Arabian shares declined for a fifth day, led by petrochemicals companies and banks after US and European markets retreated this week on concern the global economic recovery is slowing. Stock benchmark Tadawul All Share Index (TASI) lost 1.06 percent to close at 6,122.34 points on Saturday, the first trading day of the week for Saudi stock market. Saudi Basic Industries Corp. (SABIC) led the retreat, followed by Samba Financial Group and Riyad Bank. “The market is correcting due to the double whammy of a global downward trend on mounting concerns about the state of the global economy, as well as the Ramadan effect,” said John Sfakianakis, chief economist at Banque Saudi Fransi in Riyadh. Riyad tumbled 3.6 percent, the most since June 1, to SR26.6. Rajhi decreased 1 percent to 76.5, the lowest since July 25. Tasnee dropped 2.2 percent, the most in a month, to SR27.2. SABIC retreated 0.3 percent to SR85.75, the lowest since July 20. Trading volumes were low Saturday, the fourth day of Ramadan. “Ramadan traditionally pushes equities down,” said Sfakianakis. Daily volumes are lower and there is a “selling drive by retail investors who opt for cash in hand for consumption purposes.” About 223 million shares were traded on Saturday, compared with this year's daily average of 147 million. Value traded hit SR4.1 billion. European and US stocks fell this week after the Federal Reserve said the pace of economic recovery is likely to be “more modest” than forecast. The Stoxx 600 fell 1.2 percent, paring last week's 1.3 percent rally. The S&P 500 tumbled 3.8 percent this week to the lowest level since July 21. The Dow Jones Industrial Average decreased 3.3 percent. The MSCI Emerging Markets Index, which tracks developing- nation equities, slid 3 percent this week, the first drop in four weeks. Crude oil settled at $75.39 a barrel on the New York Mercantile Exchange yesterday, the lowest price since July 12. Futures fell 6.6 percent this week.
