JEDDAH: After falling 3.44 percent last week, the Saudi stock market continued to drop yesterday as Eid Al-Fitr holidays are round the corner. The market will remain closed from tomorrow until Oct. 5.

The fall in banking and petrochemical stocks dragged the Tadawul All-Share Index (TASI) below 7,000 points. The index, which has lost 36.65 percent so far this year, closed 1.97 percent or 140.34 points lower at 6,993.13.

Some financial analysts believed that the index was likely to drop further considering the volume in the past weeks.

Adel Ateek, manager of the department of assets at Riyad Bank, described the situation at Saudi stock market as abnormal, adding that it has been affected by subprime mortgage crisis in the US. “The Saudi market has been greatly affected by global economic developments and the sharp decline of the index during the past weeks reflects this fact,” he said.

Ateek said it was difficult to give a precise position of the market at present. However, he hoped that the market would become more attractive in the future as a result of new regulations. In the banking sector, shares in Al-Rajhi Bank dropped by 3 percent to SR72.75, SABB by 3.46 percent to SR69.75, Riyad Bank by 2.73 percent to SR28.50 and Alinma Bank by 1.78 percent to SR13.75. The only gainers yesterday were Saudi Hollandi Bank and Bank Albilad.

In the petrochemical sector, shares in Saudi Basic Industries Corp. (SABIC) declined by 1.96 percent to SR100 yesterday. Advanced Polypropylene Co. shares fell yesterday by 8.07 percent, Rabigh Refinery and Petrochemical Co. by 6.87 percent and Yanbu National Petrochemical Co. by 6.36 percent.

Shares in Saudi Telecom Co. (STC), Etihad Etisalat and Zain KSA dropped yesterday 1.26 percent, 3.49 percent and 2.49 percent, respectively.

Negative performance

The BMG Saudi Index witnessed a negative performance in yesterday’s trading session. The index fell by 2.3 percent to reach at 376.13 points, its lowest closing level in more than 14 months. The total market turnover also depreciated, by a strong 31 percent to SR1.2 billion ($331 million), compared to SR1.8 billion ($479 million) registered in Wednesday’s trading session. All the sectors landed on negative territory. The services sector dropped by 1.4 percent, whereas the other sectors descended as follows: Telecommunications by 1.7 percent, industry by 2.4 percent, banking by 2.7 percent, and insurance by 2.8 percent.

Three shares managed to stand still, another three appreciated, while 24 shares depreciated. The best performer was National Metal Manufacturing and Casting Company, advancing by the maximum percentage of 10 percent to SR57.75, whilst the worst performer was Advanced Polypropylene Company, falling by a strong 8.1 percent to SR33 per share.