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

MAKKAH: Low-cost Haj packages are no longer available as the registration process has been completed.Announcing it, Abdulrahman bin Ali Al-Nafei, assistant deputy minister of Haj, said domestic Haj operators have completed registering names of pilgri...
JEDDAH: An African expat woman is being investigated for torturing her baby to death by pouring boiling water on her. The motive behind the vicious attack is unknown.The Board of Investigation and Prosecution in Jeddah has charged the woman with semi...
RIYADH: Over five million Overseas Filipinos Workers (OFWs), including more than one million in Saudi Arabia, observed “zero remittance day” on Friday, in protest against the random checking of boxes sent by them to their families back home by the Cu...
JEDDAH: Security authorities have arrested 45 people from different parts of the Kingdom for Daesh links in the past 10 days. Forty of the suspects, accused of terrorism, are Saudis. Others are 2 Yemenis, an Egyptian, a Palestinian, and a national of...
RIYADH: The Ministry of Health announced on Friday that two more people were infected with the Middle East Respiratory Syndrome (MERS) coronavirus. While no deaths were announced, the virus has already killed 26 people in just two weeks, from Aug. 16...
RIYADH: The government and courts have issued 35,010 penalties against citizens and expatriates for violating the country’s residency laws including fines and jail terms.Citizens and expatriates across the Kingdom were penalized for transporting, har...

Stay Connected

Facebook