Saudi stocks track oil prices lower

Saudi stocks declined in low volume trade on Tuesday as a fall in oil prices weighed on sentiment in the region’s biggest bourse.

The Tadawul All Share Index (TASI) closed 0.9 percent lower at 6,233 with volumes retreating to SAR 4.5 billion, the lowest in nearly two months.

Caution in global markets ahead of the US Federal Open Market Committee’s policy decision set to be announced on Wednesday also played a part.

Regional equity markets seem to have found a floor along with oil prices, Aditya Pugalia of Emirates NBD said in a note.

“Having said that, the upside could be limited as the recent rally in oil prices seems premature, the average economic growth in the region is likely to be lower than that in 2015 and as the valuation discount is narrowed by recent gains,” he added.

 
On Tadawul, nearly all sectors registered losses. The petrochemicals index retreated 1.6 percent. SABIC fell 1.3 percent to SAR 74.25 and Yansab was 4.4 percent lower at SAR 35.70.

Banks fell over 1.2 percent, with Samba Financial Group dropping 3.7 percent to SAR 2.35. Elsewhere, Saudi British Bank lost 3 percent, while National Commercial Bank was 1.5 percent lower at SAR 40.70. 

Abdullah Al-Khodari Sons Co. closed 1.7 percent higher at SAR 11.95. The stock jumped 3.4 percent in early trade after the company said Monday it received SAR 9.1 million as compensation from the government for a work permit fee on foreign workers.

Meanwhile, oil prices fell for a second day on Tuesday, pressured by oversupply concerns. Brent crude, the key benchmark for the Middle East’s crude exporters, last traded down 2.5 percent at $38.54 per barrel on London’s ICE.

Write to Brinda Darasha at brinda.d@argaamplus.com