Most Middle East markets fell, tracking global losses.
Dubai's index dipped 2 percent to 1,647 points - an 11-week low, with investors little moved by plans to set up a program to address weaknesses in its financial system.
SABIC dropped 3.1 percent to its lowest close since Feb. 10, Rabigh Refining and Petrochemical Co. plunged 6.2 percent and Yanbu National Petrochemical Co.'s (Yansab) lost 6.1 percent. SABIC shares closed at SR85.25.
The Tadawul All-Share Index (TASI) fell 1.5 percent to 6,177.25 - its lowest finish since Jan. 3. with losses seen across all sectors, ranging from 0.37 percent in the Agriculture & Food Industries to a loss of 3.50 percent in the Petrochemical Industries sector. Overall market breadth was also negative, with 117 decliners and only 18 advancers recording an AD ratio of 0.15, the Financial Transaction House (FTH) said in its daily market commentary.
"The whole world has been depending on China for growth and it is trying to soft-land its economy," said Saleh Al-Onazi, vice-president of principal investment at Swicorp in Riyadh.
China will look at domestic factors rather than external ones when deciding its monetary policy, the country's central bank governor said on Monday.
A European debt crisis fanned speculation China would slow its exit from a loose, pro-growth monetary policy implemented at the height of the global financial crisis. But the governor's comments have raised expectations China will instead prioritize easing strains its domestic economy, potentially hurting a global recovery and with it demand for petrochemical products.
"Until there is stability in oil prices and global markets, together with some positive catalysts, expect the Saudi market to remain depressed," said a Riyadh-based analyst who asked not to be identified.
"Petrochemicals are cyclical and very dependent on spot and future oil prices. We're seeing a shift toward defensive sectors like agriculture, utilities and retail."
"The visibility investors were paying a premium for - the local economic story and rising oil prices - is now opaque," said the analyst. "This is causing a lot of people to get out of the market and wait for things to calm down globally."
Most regional markets opened higher, as did stocks in Europe, but the China comments and fresh fears about the impact of the euro zone crisis helped reverse these gains.
The Qatari index fell 0.5 percent to 6,939 points. The Kuwaiti measure slipped 0.1 percent to 6,939 points.
Egypt's index fell 1.1 percent to its lowest close since Jan. 3 on fears a declining euro would hurt exports and tourism, as well as pressuring the Egyptian pound.
- With input from agencies
