RIYADH/DUBAI, 21 January 2008 — Gulf benchmarks slid yesterday as Saudi Basic Industries Corp’s (SABIC) profit triggered a rout of chemical stocks and foreign investors in the United Arab Emirates took their cue from a global equity sell-off.
The Saudi Tadawul all-share index tumbled 7.45 percent to 10,697.88 points, its biggest decline since July 15, 2006.
SABIC plummeted 9.11 percent. “Global chemical prices have been rallying so it was a real surprise,” Joe Kawkabani, head of equities and assets management at the Algebra Capital said of the fourth-quarter profit. Other petrochemical stocks tumbled on fears of slowing global demand for petrochemicals. Saudi International Petrochemicals Co. slumped 9.73 percent and Yanbu Petrochemicals 9.69 percent.
Etihad Etisalat (Mobily) was the only gainer on the index. The stock closed 1.12 higher.
Dubai benchmark dropped 3.17 percent to 5,868.35 points, its biggest one-day decline since Nov. 7.
Abu Dhabi index fell 3.12 percent to 4,691.76 points, its biggest one-day loss in 20 months. Qatar’s index closed lower for a third day, down 0.96 percent at 10,358.91 points. Kuwait index ended 0.32 percent up at 13,428 points, after its first loss in the 10 days. Oman index climbed 0.47 percent to 9,703.28 points, its first gain in three days.
