Shares in Saudi fall on global cues amid US jobs data gloom

Bloomberg/Riyadh

Saudi Arabian shares slid for the first time in three trading sessions yesterday, led by petrochemical companies and banks following US markets after lower-than-expected employment data.

Saudi Basic Industries Corp, the world’s largest petrochemical maker, known as Sabic, dropped the most since March 31, while Jabal Omar Development Co, a property developer in Makkah, declined the most since June 2012. Al Rajhi Bank, the largest Saudi lender by market value, fell the most in more than three weeks.

The Tadawul All-Share Index declined 0.9%, the steepest drop since January 21, to 7113.74 at the 3.30pm close in Riyadh.

The Arab world’s biggest bourse has gained 4.6% this year.

“The decline in today’s (Saturday) trading is attributed to the drop witnessed in international capital markets but mainly US markets that tumbled over the Saudi weekend,” Mohammed al-Omran, a financial analyst and president of the Gulf Centre for Financial Consultancy in Riyadh, said by e-mail.

US stocks fell on Friday, capping the biggest weekly decline of the year for the Standard & Poor’s 500 Index, after data showed the nation added less than half the number of jobs economists forecast in March.

Sabic lost 0.3% to 97.25 riyals, while Jabal Omar Development Co slipped 4.5% to 25.5 riyals. Al Rajhi dropped 1.1% to 65 riyals.

Saudi Arabia’s stock exchange is the only Gulf bourse operating on Saturdays.