JEDDAH – Saudi Arabia's stock benchmark Tadawul All Share Index (TASI) slumped to a fresh 10-week low Tuesday as investors fretted that a gloomier outlook for the global economy would lead to lower oil receipts for the world's top crude exporter. TASI fell 0.25 percent to close at 6,790.20 points, its fourth decline in five sessions to take its losses since Sept. 15's four-month high to 5.2 percent. Oil has fallen 8.7 percent over the same period. The petrochemicals' benchmark eased 0.08 percent, down 5.5 percent for 2012. Other Middle East markets were mixed, with investors cautious as third-quarter earnings season got under way. The International Monetary Fund cut its growth forecasts for the second time in six months on Tuesday, warning the global economic slowdown was worsening. “This will obviously put some pressure on (Saudi Arabia's) petrochemical sector,” said Farouk Miah, head of research at NCB Capital. “Fundamentally, there are concerns and added to that are the geopolitical issues that are continuing in the region.” “We are in the middle of the earnings season - while the big companies have not reported yet, there are concerns that the Q3 earnings may not be that strong,” added Miah. Banque Saudi Fransi dropped 1.6 percent and Yanbu National Petrochemical Co. (Yansab) dipped 0.4 percent. Egypt's main index fell 0.4 percent to a four-week low, extending losses following Sunday's 2.4 percent decline. That drop was triggered by President Mohamed Morsi's remarks he would fight corruption and contract violations - comments that left investors worried about the scope for retroactive penalties on companies. These concerns eased Monday as Prime Minister Hisham Kandil and other ministers gave upbeat forecasts for Egypt's economy at a conference in Cairo. “Rumors that led the market down yesterday were denied and the message was very positive for the investors: that Egypt is going to enhance the investment climate,” said Mohamed Kotb, director of asset management in Naeem Financial Investment. Of the 10 most traded stocks in terms of turnover, only Orascom Construction Industries fell, slipping 1.2 percent. Gainers included investment bank EFG Hermes, up 7.5 percent, and Eastern Tobacco, up 2.9 percent. In the United Arab Emirates, National Bank of Abu Dhabi (NBAD) rose 0.5 percent after it said the UAE central bank had extended a deadline for banks to comply with new lending limits to state-linked companies. The original deadline was Sept. 30, but commercial banks will now have an extra six months, NBAD said. Dubai's index rose 0.08 percent, but gave back early-session gains. It hit a 23-week closing high on Sunday, but fell 1.1 percent the day after. – SG/Reuters
