JEDDAH: The Saudi stock market widened its losses in the last minutes of trading yesterday as the Tadawul All-Share Index (TASI) closed 5.23 percent or 359.21 points lower at 6,503.94, led by Saudi Basic Industries Corp. (SABIC) as it posted first decline in quarterly net profit in more than two years on a slowdown in sales growth.
SABIC shares led losers among blue-chip stocks, shedding 9.95 percent to SR95.
Amidst huge volatility, all the regional markets declined significantly recently. Markets across the globe have fallen and GCC (Gulf Cooperation Council) markets have also not been able to escape this adverse global market impact.
Investors ignored an announcement on Thursday by the Supreme Economic Council that the Saudi Arabian Monetary Agency, the central bank, will guarantee liquidity to Saudi banks as well as bank deposits to help the country tide over the world financial crisis which it expects will have a “limited” impact.
SABIC made SR7.24 billion profit in the three months to September, down from SR7.4 billion a year earlier, the organization said in a statement posted on the bourse website yesterday.
Earnings per share in the third quarter were SR2.42 against SR2.47 a year earlier, based on Reuters calculations.
Operating profit in the nine months to Sept. 30 rose 20 percent to SR29.64 billion after an “improvement in the prices of most core products”, it said. Net profit rose 8 percent to SR21.71 billion.
SABIC also announced yesterday a reduction in the price of different sizes of steel rebar products by SR1,245 per ton. The company had previously decreased prices by SR720 per ton, bringing the total reduction since early September to 43 percent.