Saudi plunges to 10-month low on Egypt worries
Riyadh, November 25, 2012
Saudi Arabia's bourse slumped to a 10-month closing low on Sunday as political turmoil in Egypt spooks investors mainly due to the Kingdom's heavyweight sectors - petrochemicals and banking.
Saudi Basic Industries Corporation (Sabic), the world's largest chemicals producer fell 2.3 per cent. Al Rajhi Bank dropped 1.2 per cent and Samba Financial Group shed 2.2 per cent.
The kingdom's index dropped 2.1 per cent to 6,524 points, its lowest close since January 25.
"The index broke the key support of 6,550 sharply to the down side," says Mohabeldeen Agena, head of technical analysis at Cairo's Beltone Financial. "We are expecting the bears to continue pushing it downward towards 6,300 levels."
Egypt President Mohamed Mursi issued a decree on Thursday that defends his decisions from judicial review, causing fury among his opponents and prompting violent clashes in central Cairo and other cities. Cairo's index tumbled 9.6 per cent.
Investors are concerned Egypt's political unrest could have widespread implications for the Middle East.
Back in Saudi Arabia, insurance stocks tumbled in heavy trade, with the sector's index slumping 6 per cent. The sector's small-cap stocks are prone to exaggerated moves due to their tight free-floats.
This volatility usually attracts retail traders for speculative, short-term trading, with the sector's high volumes also making it easier for investors to exit quickly.-Reuters
More Finance & Capital Market Stories
- Emaar proposes 15pc cash dividends
- ABG units win top Islamic finance award
- Finance House approves 25pc cash dividends
- Qatar 'most expensive country in Gulf'
- Egypt regulator sets rules for index
- Dubai Islamic eyes Kenya, Indonesia for expansion
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch