Saudi Arabian Shares Experience Decline for 2nd Straight Day

The benchmark stock index of Saudi Arabia has declined for the 2nd straight day after tumbling on yesterday, as it followed the global markets. The benchmark stock gauge Tadawul All Share Index went down by 0.4% and the same is now at 7,319.82. The gauge has experienced the steepest loss of the same since 13th May. Incidentally, Tadawul All Share Index is the biggest bourse of the Arab world and in 2013; it has went ahead by 7.8%.

According to analyst of Riyad Capital, Muhammad Faisal Potrik, Saudi Arabian market must have taken a cue from the flow of negative macroeconomic news of last week. Potrik added that the market was particularly impacted by the comments made by the International Monetary Fund on Saudi Arabia. Apart from that, as the summer season is approaching pretty soon, this particular period is of subdued activity in the market as people generally go for the vacations.

Among the companies, the biggest petrochemical maker in the world, Saudi Basic Industries Corp., also known as Sabic went to the lowest figure since 20th April. Sabic saw it shares go down by 0.8% and each share is currently priced at 93.5 Riyals. On the other hand, Jabal Omar Development Co., also known as JOMAR experienced tumble to the lowest level since 15th May. Each share is currently priced at 28.3 Riyals, after experienced a tumble of 2.4%. Etihad Etisalat Co., which is also called as Mobily, went down the most since 28th April. Each share of Mobily currently costs 79.5 Riyals, after declining by 0.9%.

On 20th May, the officials of the International Monetary Fund stated that it is expecting that the economic growth of Saudi Arabia will slow down to 4.4% in the current year from its value of 6.8% experienced in 2012. They gave two reasons behind this possible downfall and those are the lesser Saudi Arabian Government spending and the lower oil output.

Among cement companies, HCC saw a surge of 1.18% and each share of the same is now at 21.35 Riyals. Tacco, on the other hand, experienced a high increase of 8.30% and each share is now priced at 31.30 Riyals. In the retail industry, Alothaim has each share priced at 101.50 Riyals, after increasing by 0.24%. Jarir however went down by 1.36% and each share is now at 182.50 Riyals.