Saudi benchmark Tadawul All Share Index (TASI), along with Dubai, retreated on Wednesday as oil prices fell affecting petrochemical stocks, though other Gulf markets advanced. The Saudi index fell 0.67 percent to 6,174.74 points. The Kingdom holds 21 percent of the world's proven oil reserves. Yanbu National Petrochemical Co (Yansab) fell 7.4 percent on talk the company may not pay a dividend this year, analysts said. Saudi Basic Industries Corp (SABIC), which owns 51 percent of Yansab, dropped 2.2 percent. The index dipped 0.7 percent, its third straight decline. Filing & Packing Materials Manufacturing Co., the plastic-bag maker, decreased 5.6 percent, the most since May 25, to SR26.8, after it said second-quarter profit fell 26 percent to SR2.95 million ($786,708). Oil prices drifted lower Wednesday after the Federal Reserve lowered its forecast for US economic growth this year. Benchmark oil fell 11 cents to settle at $77.04 a barrel on the New York Mercantile Exchange after rising as high as $78.15 earlier in the session. Brent crude rose 12 cents to settle at $76.77 a barrel on the ICE futures exchange. In other Nymex trading, heating oil lost 1.13 cents to settle at $2.0361 a gallon, gasoline gave up 1.56 cents to settle at $2.0665 a gallon and natural gas fell by 4.8 cents to settle at $4.306 per 1,000 cubic feet. Dubai's index gave up early gains to fall 0.2 percent as day traders who bought at the open failed to attract longer-term investors. These traders then dumped shares at the session-end. Qatar shares advanced to the highest level this month, leading Gulf markets higher, on increased confidence in the global recovery. Qatar index rose 0.9 percent to 7,018 points, the highest since June 28. Dubai index fell 0.2 percent to 1,505 points. Abu Dhabi index rose 0.4 percent to 2,527 points. Oman index climbed 0.2 percent to 6,215 points. Bahrain index edged up 0.1 percent to 1,389 points. Kuwait Stock Exchange Index gained 0.6 percent. Qatar Islamic Bank, the Gulf state's biggest Shariah-compliant lender, led the gain. Qatar Insurance Co. advanced 4.1 percent, the most in two months. “Gains in global markets, especially Asia, helped push up local shares,” said Humam Al-Shamaa, economic adviser at Al-Fajer Securities LLC, a UAE brokerage.
