JEDDAH: The Saudi stock index suffered the biggest one-day loss since Jan. 22 as blue chips extended declines into a fourth trading session yesterday. The Tadawul All-Share Index (TASI) plunged 459.93 points or 5.41 percent to close just above 8,000 points at 8,044.79.

Out of 124 stocks traded, the only gainers yesterday were Dar Al-Arkan Real Estate Development Co. and Alabdullatif.

“The market’s sudden drop defies any logical and fundamental explanation. Trying to explain a correction on external factors does not qualitatively quantify the market’s behavior especially as this was done in a volume-healthy session,” John Sfakianakis, chief economist at SABB (The Saudi British Bank), said, adding that looking closely, the external environment has not become more geopolitically uncertain as it was a few weeks back or when the market reacted in a positive way to the Capital Market Authority’s (CMA’s) announcement of the foreign swap agreement.

Sfakianakis said, “The global economic story is a definite drag but it was perilously there for some time. Oil prices are correcting and will probably dip below $100 but market talk views this as gloomy.

In December 2007 when the market was on its steep rise, oil was in the $90 range where oil prices are temporarily now headed. Certainly this kind of market behavior does invite short-term money for locals and foreigners alike and crowds out all others.”

Over SR6.20 billion worth of shares changed hands yesterday. All the sectors were in negative territory.

The Petrochemical Industries Index was the worst performer as it dropped 7.69 percent to 7,408.30 yesterday. Saudi Basic Industries Corp. (SABIC) shares plunged by 8.12 percent to close at 110.25. Sipchem shares declined by 9.92 percent to SR29.50, YANSAB by 8.62 percent to SR45 and Petro Rabigh by 8.45 percent to SR48.75.

Al-Rajhi Bank shares declined by 4.69 percent to SR81.25, Samba Financial Group by 5.92 percent to SR71.50, Saudi Hollandi Bank by 6.07 percent to SR58 and Arab National Bank by 7.48 percent to SR52.50.

BMG turnover up

The BMG Saudi Index also dropped 6 percent to close at 429.34 points. The total market turnover, however, elevated by 93 percent to reach SR3.1 billion ($835 million) versus the SR1.6 billion ($433 million) which traded on last Wednesday’s session.

The worst performer was the BMG industrial sector, falling by a huge 7.4 percent to be followed by the banking by 4.6 percent, services by 4 percent, insurance by 3.6 percent, and the lowest losses were incurred by the telecommunications sector, going down by 2.9 percent.