JEDDAH: Losses across most sectors sent Saudi Arabia's stock benchmark Tadawul All Share Index slipping 0.85 percent Monday to 6,634.03 points, its lowest close since May 8, with petrochemical stocks touching a four-week low amid declining oil prices. The petrochem index fell 1.3 percent. Yanbu National Petrochemical Co. lead losses and was down 2.5 percent. Saudi Basic Industries Corp, the largest company by market value in the Gulf, fell 0.9 percent. Oil fell more than $1 per barrel Monday as worries over the restructuring of euro zone debt and doubts about the pace of global growth encouraged investors to reduce risk. Agricultural sector drew investor interest with National Agriculture Development Co. and Tabuk Agriculture Development Co. rising 2.2 and 9.9 percent respectively. “Retail player's positions have shifted to locally driven small to mid caps, especially construction and agriculture stocks, and will continue to stay so to avoid relative exposure to global commodity markets,” said Amro Halwani, a senior trader at Shuaa Capital in Riyadh. Banking stocks added further weight with Samba Financial Group slipping 0.5 percent. Elsewhere in the Gulf, Dubai's benchmark ended 1.4 percent lower at 1,563 points, its lowest closing since April 7. Emaar Properties a shareholder in Dubai Bank, fell 2.2 percent, while other property stocks also closed lower. “The market is seeing a knee-jerk reaction to this, but on a less immediate term basis, this is a positive development for Emaar because it removes uncertainty,” said Ibrahim Masood, senior investment officer at Mashreq Bank. “The investment didn't really jell with Emaar's business. Active stocks Arabtec and Deyaar slid 2.2 and 3.2 percent. Emaar's 30 percent stake in Dubai Bank may have to be written down because a rescue by the government would not follow a normal course of business. Banking and property stocks weighed on Abu Dhabi's index with Aldar Properties dropping 2.1 percent in high activity. Competitor Sorouh Real Estate fell 2.2 percent, while heavyweight National Bank of Abu Dhabi was down 1.8 percent. Losers outweighed gainers four to one. The benchmark fell 0.5 percent to 2,641 points, its lowest close since April 12. Oman's index MSI fell to an 11-month low as local investors were thin and first-quarter earnings continued to weigh. The benchmark fell 0.3 percent to 6,134 points, its lowest close since June 20. Volumes hit a month-low. “We're are seeing very low contribution from investors... you can see the sentiment is negative,” said Adel Nasr, United Securities brokerage manager.
