JEDDAH – Saudi stocks closed lower Saturday, dragged down by losses in petrochemical and banking sectors. The benchmark Tadawul All Share Index ended 0.93 percent lower at 6,774.26 points and the petrochemical index ended 0.8 percent lower at 5,964 points. The Saudi market is "slightly down because of the reduced growth rates in the US," Turki Fadaak, head of research at Albilad Investment Co. in Riyadh, said Saturday. Fed officials lowered their forecasts for US economic growth and raised their predictions for unemployment in each of the next three years. Policy makers now see 1.9 percent to 2.4 percent growth in 2012, down from their April forecast of 2.4 percent to 2.9 percent. Stocks "are clearly responding to downward pressure in oil," Jarmo Kotilaine, chief economist at National Commercial Bank, said. "The oil price is something that fuels the fiscal engine and the broader economic mood." Petrochemical giant Saudi Basic Industries Corp. (Sabic) closed 0.5 percent down. The banking index slipped 0.9 percent to 15,417 points, dragged down by losses in heavyweight Al Rajhi Bank which fell 0.7 percent. OPEC's basket of crudes dropped on June 22 below $90 a barrel for the first time in more than 17 months. Brent oil futures hit an 18-month low Thursday before rebounding to settle at $90.98 a barrel Friday, a fall of 6.8 percent over the week. US stock market bounced back Friday, with the Dow Jones industrial average gaining 67.21 to close at 12,640.78. The Standard & Poor's 500 index rose 9.51 points to 1,335.02 and the Nasdaq composite index climbed 33.33 points to 2,892.42. The gains turned the Nasdaq positive for the week. – SG/Agencies
