The Tadawul All-Share Index (TASI) ended 0.66 percent lower at 6,133.96 points. The sector activity for the day was mostly negative with 13 out of 15 sectors closing with losses ranging from 0.14 percent by the Insurance sector to 1.41 percent by the Insurance sector. On the other hand the gaining sectors were Retail and Hotel & Tourism with respective gains of 0.25 percent and 1.60 percent. The overall market breadth for the day was negative with 31 advancers against 98 decliners giving it an AD ratio of 0.31, the Financial Transaction House (FTH) said in its daily market commentary.

Shares in Zain Saudi Arabia fell 0.62 percent to SR8.05.

Heavyweight Saudi Basic Industries Corp. dropped 0.28 percent to SR87.75, while the two biggest listed lenders, Al-Rajhi Bank and Samba Financial group, fell 1.3 and 2.2 percent respectively.

Saudi Telecom Co. closed 0.5 percent lower at SR37.90, and Mobily closed 1.47 percent down at SRSR50.25.

The liquidity for the day dropped to SR1.8 billion as compared to SR3.5 billion as on Wednesday.

Saudi Kayan Petrochemicals Co. shares fell 0.56 percent to SR17.70. Kayan said on Saturday it expects to start trial operations at its petrochemicals complex's main units in the third quarter of this year.

Kayan, located in Jubail and a unit of Saudi Basic Industries Corp. (SABIC), said in a statement on the bourse website that pre-commissioning work at the complex was on schedule.

The company had said in April the complex's main facility - an ethylene cracker - would start operations in the second half of this year with other units to follow slowly through in 2012.

The complex will have an annual production capacity of 6 million tons of petrochemicals including ethylene, propylene and ethylene glycol from 16 plants. 

The firm also said in the statement that it trimmed its second-quarter net loss to SR1.8 million ($480,000) from SR6.5 million in the same period a year earlier.
 
- With input from agencies