The Saudi stock market seems to be undergoing a major correction as its key index tumbled over 400 points on Wednesday. The Tadawul All Share Index (TASI) closed at 14,297.68, down by 420.14 points or 2.85 percent, according to the daily English newspaper Arab News. Out of 77 stocks traded only one was higher while 76 were down. The Industrial Index dropped 1,140.11 points at 37,305.97 as shares of all companies declined yesterday. Saudi Cable Co., Al Mawashi Al Mukairish United Co., and Saudi Land Transport Co. shares plunged by 10 percent to close at SR285.75, SR110.25 and SR360, respectively. Shares of the petrochemical giant Saudi Basic Industries Corp. fell by 2.06 percent at SR1,525. The Banking Index also dropped by 497.69 points at 32,388.55 as shares of all the banks dropped yesterday. Al-Rajhi Banking & Investment Corp. shares fell by 1.34 percent at SR1,835 despite Standard & Poor's Ratings Services said in Paris yesterday that it assigned its "A-/A-2" long- and short-term counter party credit ratings to Al-Rajhi Banking & Investment Corp. The outlook is stable. Standard & Poor's expects that Al-Rajhi will retain its strong financial profile and leading commercial position in retail banking, despite increasing competition. Saudi Telecom Co. and Etihad Etisalat shares also dived by 2.52 percent at SR890 and by 4.54 percent at SR593.75, respectively. Saudi Electricity Co. shares fell by 4.59 percent at SR135.
