Saudi Arabia's stock benchmark index Tadawul All Share Index (TASI) slumped 0.28 percent - its lowest finish since June 8 -at 6,001.24 points as declines in oil prices and global markets spurred selling by local investors. Samba Financial Group fell 1.7 percent, Rabigh Refining and Petrochemical Co lost 0.9 percent and SABB dipped 0.9 percent. “Oil prices have come off and that has negatively affected the petrochemicals sector and the Saudi market in general,” said Youssef Kassantini, an independent financial analyst. “Global economic growth is slowing and that should translate into lower oil prices. The fear factor in the Saudi market is very high.” This has spurred investors to reduce positions, with three trading sessions to come on US markets before Saudi's bourse opens again. Technically, the Saudi market also looked bearish, Kassantini said, warning it has broken out of a ‘pennant' formation it had formed in falling from an April peak of 6,929 points. The next major support comes at 5,250 points, with an intermediate prop at 5,750, Kassantini added. Benchmark crude for October delivery rose 35 cents to $71.98 a barrel on the New York Mercantile Exchange. Crude has fallen from around $82 a barrel early this month. In London, Brent crude was up 59 cents at $72.97 a barrel on the ICE Futures exchange. US crude oil futures extended losses Wednesday after a government report showed US durable goods orders rose in July much less than forecast, the latest sign a global economic recovery is slowing. Crude was down 13.6 percent since Aug. 3. Dubai's index DFM fell 0.6 percent to 1,485 points. Abu Dhabi's index ADI dropped 0.3 percent to 2,496 points. DP World, which is majority-owned by Dubai World, dropped 3.8 percent to a week low. Qatar's benchmark QSI fell, ending a seven-session losing streak as global market declines persuaded investors to lock in some gains. The index fell 0.8 percent to 7,146 points, easing from Tuesday's three-month high. Oman's index MSI fell for a second day at 0.2 percent to 6,281 points.
