Saudi Arabian shares retreated the most in two months, leading a decline in Gulf markets, after global equities fell on concern the global economic recovery is faltering. The stock benchmark Tadawul All Share Index declined 0.23 percent, closing at 6,018.27 points. Oil declined for a fifth day. Saudi Basic Industries Corp., the world's biggest petrochemical maker known as SABIC, dropped to the lowest since July 4. Its Saudi Kayan Petrochemical Co. unit fell 5.7 percent to a 10-month low and Jabal Omar Development Co., a Saudi real estate developer, slid the most in two months. SABIC fell 2.3 percent to SR83.50. Saudi Kayan fell to SR15.80, the lowest level since Oct. 6. Jabal Omar decreased 1.6 percent to SR18.15. The developer appointed Hill International Inc. as manager of the company's project in Islam's holiest city. Samba Financial Group, the second-largest lender in Saudi Arabia, fell 1.3 percent, the most since Aug. 11, to SR58.50. Elsewhere in the region, Kuwait SE Price Index rose 0.1 percent. Abu Dhabi's gauge and Oman's MSM 30 Index retreated 0.3 percent. Qatar's QE Index was little changed and Bahrain's measure advanced 0.4 percent. The Dubai Financial Market General Index lost 0.5 percent. “A stream of negative news from international markets over the past week has pushed buyers to the sidelines,” said Amro Halwani, a trader at Shuaa Capital PSC in Saudi Arabia. “Sentiment on oil is still murky. This is pushing nervous investors to dump petrochemicals.” Oil prices slipped on Monday as investor unease about a stalled economic recovery weighed on equities and energy markets and a slightly stronger dollar helped oil break a string of three days of gains. Investors were cautious ahead of a report on manufacturing activity due on Wednesday from the Institute of Supply Management and the ISM's report on the services sector on Friday, when the government's closely watched August nonfarm payrolls report also arrives. US crude for October delivery fell 47 cents, or 0.63 percent, to settle at $74.70 a barrel, after trading from $74.17 to $75.58. ICE Brent for October fell 5 cents to settle at $76.60 a barrel. US stocks slumped Monday over weak consumer spending figures and ahead of key data later this week expected to show the US economic recovery is slowing down. The Dow Jones Industrial Average was down 140.92 points (1.39 percent) to 10,009.73 in closing trade, while the broader S&P 500 index lost 15.67 points (1.47 percent) to 1,048.92. The tech-rich Nasdaq composite index shed 33.66 points (1.56 percent) to 2,119.97 as daily trade volume remained low. Commerce Department data showed consumer spending rose 0.4 percent and incomes rose 0.2 percent last month, largely in line with forecasts. European stocks rose on Friday, led by telecoms and other defensive sectors, but it was not enough to stop an overall loss for the week as investors reacted to data that cast further doubt on the strength of the economic recovery. The FTSEurofirst 300 index of top European shares rose 0.6 percent to close at 1,026.25 points, adding to a 0.9 percent rise on Thursday. However, the index fell 0.3 percent over the week, its third straight week of losses. The European benchmark soared 62 percent, between hitting a lifetime low in March 2009, and the end of that year. But the rally has stalled on worries about European debt levels and the strength of the economic recovery and the index is down 1.9 percent so far this year. “It's a rally after a sell-off, with no conviction behind it,” said Colin McLean, managing director at fund manager SVM in Edinburgh. “There's been a general trend towards defensives, both here and in the United States.” The Euro Stoxx 50, the euro zone's blue chip index, rose 0.9 percent to 2,630.35 points, after falling to as low as 2,579.91 points, below the 23.6 percent Fibonacci retracement of the index's fall from an April high to a May low, a key support level. Japanese shares rose 1.76 percent Monday as the Bank of Japan (BoJ) announced plans to extend a multi-billion-dollar loan program aimed at countering a strong yen, brokers said. The yen has recently traded at 15-year highs, making Japanese exports less competitive overseas and reducing the companies' repatriated profits, which is seen as threatening Japan's nascent recovery. Nikkei index gained 158.20 points to 9,149.26, while the Topix index of all first section shares added 9.59 points or 1.17 percent to 829.21. – SG/Agencies The euro fell to $1.2663 in New York from $1.2751 late Friday. The US currency fell against yen at 84.55 compared to 85.19.
