JEDDAH: Saudi Basic Industries Corp (SABIC) dropped, weighing on the Kingdom's stock benchmark Tadawul All Share Index (TASI), as oil prices fall from 27-month highs. TASI closed lower Wednesday by 0.05 percent at 6,696.55 points. SABIC dropped 1.2 percent. A stronger dollar pushed oil prices down from 27-month highs toward $88 a barrel Wednesday, extending losses from the previous session despite signs US crude demand may increase. In Europe, benchmark oil for February delivery was down $1.20 to $88.18 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost $2.17 to settle at $89.38 Tuesday. In London, Brent crude was down $1.09 to $92.44 a barrel on the ICE Futures exchange. Improving US economic indicators helped the dollar make significant gains, turning crude more expensive for investors holding other currencies. The euro fell to $1.3231 from $1.3305 late Tuesday in New York, while the British pound retreated to $1.5556 from $1.5583. Dubai's Arabtec closed at its lowest value in nearly a week, weighing on the emirate's index, after the regulator imposes a trading ban on the builder's CEO. Arabtec dropped 2.5 percent to AED1.98, its lowest value since Dec. 30. The company's chief executive said earlier his six-month suspended from trading in UAE was due to his oversight in selling shares prior to the announcement of projects. "Dubai saw some selling pressure as global markets were down but the Arabtec news added to the decline," said Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments. "However, the company still has very strong fundamentals and I don't see it being affected in the long run." Heavyweight Emaar Properties fell 1.1 percent and Union Properties slipped 2.1 percent. The index closed 0.7 percent lower at 1,648 points. Abu Dhabi's index advanced 0.3 percent to 2,757 points. Banking stocks lead a late rally, as Kuwait's index closed at a near eight month high. Commercial Bank of Kuwait gained 2.2 percent, Kuwait Finance House added 1.6 percent and Burgan Bank advanced by 1.8 percent. "Banks are doing well as it's the earnings seasons and there is a lot of dividend speculation," said a Kuwaiti trader who did not want to be named. "Local investors have stepped in and are backing banks, which is a good sign." The index ended higher by 0.4 percent at 6,999 points, its highest close since November 8. Qatar's index closed 0.3 percent higher, gaining for a sixth straight session. Barwa Real Estate added 1.1 percent, but heavyweight Industries Qatar dropped 2 percent, its largest fall in a week.
