JEDDAH/AMMAN: Saudi stocks plummeted for the third consecutive week under selling pressures involving blue chip firms ahead of the publication of the second quarter results.

The Tadawul All-Share Index (TASI) shed 3.3 percent last week, closing at 5,413.23 points. TASI is currently 12.7 percent higher than the year’s start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

The decline was led by the petrochemical sector, particularly the Saudi Basic Industries Corp. (SABIC), which dived 10.40 percent on rapidly falling oil prices and the imposition of protective fees on petrochemical products by foreign countries, the report said. SABIC shares closed at SR56 last week.

The banking sector also fell 3 percent due to the persisting credit crisis in the country, it added. Bank Albilad’s shares dropped by 8.25 percent to SR22.80, SABB by 5.05 percent to SR43.20 and Al-Rajhi Bank by 4.37 percent to SR60.25.

The top gainer last week was Qassim Cement as its shares jumped by 14.16 percent to SR133.

Shares in Abdullah Al-Othaim Markets Co. declined by 12.28 percent to SR50 last week. The BIG expected volatility to prevail at the Saudi market this week, with investors awaiting the release of more half-year results of listed firms, particularly in the petrochemical and banking sectors.

The Saudi stock exchange will also “continue to monitor developments on world markets, especially the US economy, in order to determine the future views about the market”, the group said.

Trading value reached SR19.8 billion last week, down against the previous week’s SR24 billion. SABIC dominated trading value at 10 percent followed by Alinma Bank at 8 percent and Dar Al-Arkan Real Estate Development Co. at 4 percent.

Arab stock markets suffered heavy losses this week due to retreating oil prices and ambiguity surrounding prospects of the world economy getting out of its severe downturn, financial analysts said yesterday.

“The plunge can be attributed mainly to the psychological correlation existing between regional and global markets,” said Wajdi Makhamreh, chief operating officer at the Amman-based Sanabel International Holding.

“Receding expectations of an early world recovery put downward pressure on oil prices and a sell-off throughout regional bourses,” he said.

Makhamreh and other analysts expected severe volatility to prevail at regional markets in the coming week as investors await the release of semi-annual corporate results.

Jordanian shares also plummeted to their lowest level in six years, with selling pressures from both foreign and local investors, Makhamreh said.

An ambiguous offer from the Jersey-registered Infra Mena fund to become a strategic partner in the Jordan Petroleum Refinery appeared to have sent a negative message to the Amman Stock Exchange (ASE), he added.

The ASE all-share price index plunged 5.39 percent last week, closing at 2,581 points, according to the market’s weekly report.Kuwait’s KSE all-share price index plummeted 7.6 percent to close week at 7,491 points.

The benchmark prices of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi fell 7.6 percent and 2 percent to close respectively at 1,682 points and 2,618 points.

Egypt’s AGX30 index, measuring performance of the market’s 30 most active stocks, dived 8.5 percent last week, closing at 5,458 points.

The GulfBase GCC Index fell 6.36 percent to 3,410.82 points last week. The value of GCC traded shares plunged 18.45 percent to $7.89 billion and volume dropped by 32.49 percent to SR4.15 billion of shares.

— With input from Abdul Jalil Mustafa