Investor concerns drag Tadawul to 10-month low



JEDDAH: KHALIL HANWARE

Published — Monday 26 November 2012

Last update 26 November 2012 1:25 am

| نسخة PDF Print News | A A

Saudi Arabia's shares slumped to a 10-month low yesterday as the political developments in Egypt spooked regional investors.
The Tadawul All-Share Index dropped 2.1 percent to its lowest close since Jan. 25 and marked its biggest one-day loss since early June.
Egypt's stock index tumbled 9.6 percent to 4,918 points yesterday.
A Kingdom-based analyst, who preferred anonymity, said recent measures announced by the Labor Ministry to enforce new fees on foreign workers were also causing concern among some investors.
“The measures are posing a threat to the private business, which may lead to deterioration in the private sector activities due to the increase in labor costs,” said the analyst.
The Kingdom's heavyweight sectors — petrochemicals and banking — were the main drag.
Saudi Basic Industries Corp fell 2.3 percent. Al-Rajhi Bank dropped 1.2 percent and Samba Financial Group shed 2.2 percent. The insurance index dropped 6 percent.
Basil Al-Ghalayini, CEO of BMG Financial Group, said: “Obviously, the decline, driven by the petrochemical sector, is another indication of how the Saudi market's movement is also influenced by key regional and international markets’ movements.”
A recent report from the National Commercial Bank that analyzed last month's market performance said investor appetite continued to deteriorate on a monthly basis as the level of activity dropped drastically during October. But it said numerous companies had reported strong growth in profitability and the leading sector last month, energy, posted a 3.3 percent gain during October.

What's happening around Saudi Arabia

RIYADH: No date has been set so far for the visit of Custodian of the Two Holy Mosques King Salman to Moscow, the Saudi Press Agency said on Sunday, quoting a source at the Saudi Ministry of Foreign Affairs.Russia’s RIA news agency reported on Thursd...
JEDDAH: Foreign Minister Adel Al-Jubeir says if the Syrian political process fails, Bashar Assad will have to be removed “by force.”“I believe Assad is weak and I believe Assad is finished,” he told CNN’s Christiane Amanpour in an exclusive interview...
JAZAN: Saudi defense forces at the southern border shot down on Saturday a Scud missile that originated from Yemen and targeted Khamis Mushait where a major airbase is located, Al-Arabiya reported.Meanwhile, Foreign Minister Adel Al-Jubeir told a sec...
JEDDAH: Employees of the Education Office in Al-Daer governorate, Jazan, where seven people were gunned down on Thursday are in a state of shock and perplexed as to what prompted the attacker — a teacher — to take such an extreme step.The teacher, id...
JEDDAH: The campaign to support Syrian refugees with all their needs is being carried out effectively, as per the directives of Custodian of the Two Holy Mosques King Salman, Crown Prince Mohammed bin Naif and Deputy Crown Prince Mohammed bin Salman....
RIYADH: The Ministry of Municipalities and Rural Affairs has ordered the allocation of separate sections for female members of municipal councils.This was announced by Jedaie Al-Qahtani of the ministry. “This is in implementation of Clause 107 of the...
DAMMAM: The 9th Saudi Student Conference which is being held on Feb. 13-14 is sponsored by Umm Al-Qura University and hosted by the University of Birmingham in the United Kingdom. It was organized by the Scientific Society for Saudi Students in the...
RIYADH: Over the past 10 years, begging in the Kingdom has increased substantially, with the number of organized gangs of expatriate beggars increasing to 85 percent of the total number of beggars, according to Social Affairs Ministry Majed Al-Qassab...
RIYADH: The Ministry of Health said it expects its blood donation drive will received 450,000 milliliters (ml) of blood when the Janadriyah festival ends on Feb. 19.Khalid Ibrahim Zobaie, who supervises the blood donation project, said the drive is i...
JEDDAH: The Shoura Council’s decision to reduce working hours in the private sector from 48 hours to 40 hours per week would result in additional operational costs in the sector due to 30 percent higher wages for expat workers, according to Mansour b...
MADINAH: Madinah Gov. Prince Faisal bin Salman recently visited a number of ongoing developmental project sites in the Holy City, as part of his efforts to ensure that they meet the set standards and deadlines.During the visit, he said that all the s...
RIYADH: The National Guard Ministry is studying the possibility of having two countries as guests of honor each year instead of one at the Janadriyah festival for culture and heritage, the Kingdom’s most prestigious annual festival.This was revealed...
DAMMAM: The Pakistan International School in Alkhobar hosted their 49th annual prize distribution ceremony to honor outstanding students in the presence of Pakistani Ambassador Manzoor Ul Haq and his wife, Nighat Manzoor.Haq appreciated the efforts o...
DAMMAM: The Weaam Association for Family Care in the Eastern Province has succeeded in addressing more than 700 cases of family disputes during the last one year.Abdulrahman Al-Khudair, Weaam’s director of public delations, said: “The association off...
JEDDAH: The Nakheel mall case has continued to grab the limelight, with a number of lawyers now offering their services to the girl who was roughed up by some Haia members in Riyadh. Some people also expressed, through social media, their support to...

Stay Connected

Facebook