Saudi bank­ing, petro­chem­i­cal shares down

Arab News - - BUSINESS -

JED­DAH: Saudi Ara­bia’s stock mar­ket gave up early gains by the close on Tues­day.

The Tadawul All-Share In­dex has soared over 25 per­cent — al­most en­tirely eras­ing its losses this year — since the gov­ern­ment’s $17.5 bil­lion in­ter­na­tional bond is­sue in late Oc­to­ber eased fears about its abil­ity to cope with an era of cheap oil, and helped it be­gin mak­ing de­layed pay­ments to set­tle its debts to pri­vate com­pa­nies.

The in­dex is down only by 0.22 per­cent so far this year.

In early trade on Tues­day the in­dex rose as much as 0.7 per­cent. But Brent crude oil fell around 2 per­cent to be­low $47.50 a bar­rel on Tues­day af­ter­noon on signs that oil ex­porters were strug­gling to agree a deal to cut pro­duc­tion.

This pulled the stock in­dex down 0.1 per­cent in ac­tive trade to 6,897 points at the close. It failed to con­firm a clear break of ma­jor tech­ni­cal re­sis­tance on the April peak of 6,876 points.

The bank­ing and petro­chem­i­cal sec­tors, which led the mar­ket up dur­ing most of its re­bound this month, un­der­per­formed on Tues­day; banks dropped 0.3 per­cent and petro­chem­i­cals lost 0.6 per­cent. Jarir Mar­ket­ing jumped 6.1 per­cent.

Data showed cash with­drawals from au­to­mated teller ma­chines edged up in Oc­to­ber, sug­gest­ing cuts to pub­lic em­ploy­ees’ fi­nan­cial al­lowances might not be hurt­ing con­sump­tion.

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