RIYADH, Nov 15, (Agencies): The stock market in oil powerhouse Saudi Arabia, the largest in the Arab world, slumped heavily on the first trading day of the week on Saturday, when shares ended 7.4 percent lower. The Tadawul All-Shares Index (TASI) closed at 5,079.54 points, with the key petrochemicals sector down by 9.47 percent and market leader SABIC losing 9.95 percent of its value. In the past three months SABIC stocks have plunged 55 percent. The banking sector shed 8.32 percent by close of trading, with all other sectors also in the red. The TASI finished last week’s trading on Wednesday down almost 10 percent and the index is 48.6 percent lower for the year so far. It fell 25.8 percent in October.

Other stock markets in the Gulf trade from Sunday through Thursday. Saudi stocks fell sharply on Saturday, ending at their lowest level since March 2004, with blue-chips Saudi Basic Industries Corp (SABIC) and al-Rajhi Bank closing almost limit down. Investor fears over the health of the global economy were stoked by data that showed the euro zone was entering a recession, said Abdulhamid al-Amri a member of the Saudi Economic Association think tank.

Portfolios
“The data from the European Union has had a negative impact on the Saudi bourse ... Banks are liquidating some portfolios on margin-calls,” he said. John Sfakianakis, chief economist at HSBC’s Saudi subsidiary SABB bank, said investors believed prices were too high because of an expected decline in profitability in 2009. “Banks will have compressed profitability going forward in addition to petrochemical firms,” Sfakianakis said.

* The all-share index lost 7.4 percent to end at 5,079 points, its lowest closing level since late March 2004, according to data from the bourse website.

* SABIC ended 9.96 percent lower at 54.25 riyals, its lowest close since mid-August 2004, according to bourse data.

* Rajhi closed 9.77 percent lower at 60 riyals, its lowest close since March, 2004.

Also:
RIYADH: Saudi Arabia’s bourse will close from Dec 6 to Dec 10 for the Islamic holiday of Eid al-Adha.
Trading will resume on Saturday Dec 13, the exchange said in a statement on its website.