Saudi shares hit 10-month low as Egypt’s crisis weighs

Saudi shares hit 10-month low as Egypt’s crisis weighs; Gulf mixed
25 November, 2012 – By Nadia Salee – Reuters

Saudi Arabia’s shares slumped on Sunday, dragging the market down to a 10-month low as political turmoil in Egypt sparked by President Mursi’s new powers spooked regional investors, while other Gulf markets closed mixed.

Egypt President Mohamed Mursi decree issued on Thursday that defends his decisions from judicial review, set off street violence and unravelled efforts to restore stability after last year’s revolution. Cairo’s index plunged 9.6 percent.

Investors are concerned Egypt’s political unrest could have widespread implications for the Middle East.

“The market was already under pressure from the violence in Gaza and now it’s Egypt’s protest,” said a Riyadh-based trader who asked not to be identified.

Israel and Gaza called a truce on Wednesday, following eight days of violence, which triggered a sell-off across regions and weighed on markets.

Saudi’s heavyweight sectors – petrochemicals and banking – were the main drag. Saudi Basic Industries Corp (SABIC) , the world’s largest chemicals producer fell 2.3 percent. Al Rajhi Bank dropped 1.2 percent and Samba Financial Group shed 2.2 percent.

The kingdom’s index dropped 2.1 percent to its lowest close since Jan. 25 and marked its biggest one-day loss since early June.

“The index broke the key support of 6,550 sharply to the down side,” said Mohabeldeen Agena, head of technical analysis at Cairo’s Beltone Financial. “We are expecting the bears to continue pushing it downward towards 6,300 levels.

In Dubai, property stocks helped lift the index, which gained 0.3 percent, after plans announced for a new mega project in the emirate.

Dubai’s Emaar Properties climbed 2.2 percent, Drake & Scull added 0.6 percent and builder Arabtec rose 1.3 percent.

The emirate’s ruler on Saturday unveiled a master development that appeared to include re-starting projects that were halted following a property price crash. …more