Saudi Arabia's bourse ended Saturday at a three-week low as petrochemical and banking shares weighed following a drop in oil prices and global stocks. The stock benchmark Tadawul All Share Index plunged 1.27 percent to its lowest close since April 16 at 7,450.26 points. The petrochemical sector benchmark dropped 1.5 percent and the banking index declined 1.4 percent. Global stocks swooned and crude oil tumbled on Friday after a weak US jobs report and data that suggested a deeper recession across the euro zone than previously thought dented sentiment. "Petrochemicals are leading declines because of the drop in the price of oil and the US jobs report, which fell below expectations," Turki Fadaak, head of research at Albilad Investment Co., said by phone. "But we don't expect an extended retreat as fundamentals remain strong in the Saudi market." Crude oil for June delivery tumbled $4.05 to $98.49 a barrel on the New York Mercantile Exchange, the lowest settlement since Feb. 7. The drop came after American employers reported adding 115,000 jobs April, the lowest figure in six months. Slowing job creation may make it difficult for consumers to boost their spending, which accounts for 70 percent of the world's largest economy. Heavyweights Saudi Basic Industries Corp. (Sabic) and Al Rajhi Bank were down 1.7 percent and 1.3 percent, respectively. Still, Saudi companies, which started reporting first- quarter financial results in April, have exceeded expectations. Al-Rajhi is among five lenderswhich posted earnings that beat estimates as lending increased in the Arab world's biggest economy. Al-Rajhi dropped to SR77.5, the lowest level since April 16. Sabic, the company with the heaviest weighting in Saudi Arabia's index at 11 percent, fell 1.7 percent to SR101.5. Profit was SR7.27 billion ($1.9 billion) in the first quarter. Earlier in the day, the index was down 1.6 percent, as the petrochemical sector benchmark dropped 2 per cent and the banking index lost 1.5 percent. Heavyweights Sabic and Al Rajhi Bank were down 1.9 per cent and 1.3 per cent respectively. Saudi Arabian shares fell the most in more than two weeks after oil slipped below $100 a barrel for the first time since February and a decline in US job additions fueled concern the country's economic growth may slow.
