The Al Qasr residential home project, built by Dar Al- Arkan Real Estate Development Co, stands in the Al-Swaiyadi district of Riyadh (file). Shares of Dar Al Arkan plunged 6.6% yesterday as the Arab world’s largest bourse fell 1.1%, closing at its lowest since January 31
Reuters/Dubai

Saudi Arabia’s index reversed early gains to slump to an 18-week closing low yesterday as global uncertainty prompted investors to cut positions ahead of the kingdom’s weekend.
The Arab world’s largest bourse fell 1.1%, closing at its lowest since January 31. The market is volatile, trading in a 2.9% range in the final session before the local Thursday-Friday weekend.
“We are not sure what caused the dramatic change in the market - of course, one reason was that traders were giving up positions to cut risk (exposure) to global factors ahead of the weekend,” said Hesham Tuffaha at Bakheet Investment Group head of asset management.
Rumours about possible announcements by the Saudi regulator to crack down on market speculation may have also sparked the decline, some analysts said.
King Abdullah ordered the Capital Market Authority (CMA) to take action against market manipulation, the daily Alsharq newspaper reported in April.
Heavyweights Saudi Basic Industries Corp and Saudi Telecom Co led declines, falling 1.1 and 1.5% respectively.
Property firm Dar Al Arkan plunged 6.6%.
Banks also retreated. SABB dropped 2.7% and Banque Saudi Fransi shed 0.3%.
“We have seen very volatile trading today. It’s unclear how markets will react when it reopens next week,” said Tuffaha.
Trading in other Gulf markets were muted, as investors stayed on the sidelines due to global uncertainty.
Dubai’s benchmark edged up but institutional investors stayed away.
“We are not seeing any institutional investors in the market and individual traders continue to be the major players,” said Samer al-Jaouni, general manager of Middle East Financial Brokerage.
Heavyweight Emaar Properties advanced 0.4% and Dubai Financial Market, the Gulf Arab region’s only listed bourse, added 1%. Telecoms firm du gained 1.3%.
The index ended 0.4%, taking its year-to-date gains to 7%.
In Abu Dhabi, property firms Aldar and Sorouh Real Estate gained 1.9% and 2% respectively.
A three-month deadline to take a decision on a state-backed merger of the two firms ends next week. The companies picked Goldman Sachs and three other banks as financial advisers for the deal last month.
Abu Dhabi’s benchmark advanced 0.07%.
Kuwait’s index resumed its decline, slipping 0.7%. The bourse has now ended down in 13 of the last 16 sessions.
Elsewhere, Egypt’s measure fell 0.4% to 4,485 points; Oman’s index rose 0.3% to 5,784 points and Bahrain’s measure added 0.06% to 1,132 points.