Saudi shares hit 10-month low as Egypt\u2019s crisis weighs; Gulf mixed
\n25 November, 2012 – By Nadia Salee – Reuters<\/p>\n
Saudi Arabia\u2019s shares slumped on Sunday, dragging the market down to a 10-month low as political turmoil in Egypt sparked by President Mursi\u2019s new powers spooked regional investors, while other Gulf markets closed mixed.<\/p>\n
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\u2019s revolution. Cairo\u2019s index plunged 9.6 percent.<\/p>\n
Investors are concerned Egypt\u2019s political unrest could have widespread implications for the Middle East.<\/p>\n
\u201cThe market was already under pressure from the violence in Gaza and now it\u2019s Egypt\u2019s protest,\u201d said a Riyadh-based trader who asked not to be identified.<\/p>\n
Israel and Gaza called a truce on Wednesday, following eight days of violence, which triggered a sell-off across regions and weighed on markets.<\/p>\n
Saudi\u2019s heavyweight sectors – petrochemicals and banking – were the main drag. Saudi Basic Industries Corp (SABIC) , the world\u2019s largest chemicals producer fell 2.3 percent. Al Rajhi Bank dropped 1.2 percent and Samba Financial Group shed 2.2 percent.<\/p>\n
The kingdom\u2019s index dropped 2.1 percent to its lowest close since Jan. 25 and marked its biggest one-day loss since early June.<\/p>\n
\u201cThe index broke the key support of 6,550 sharply to the down side,\u201d said Mohabeldeen Agena, head of technical analysis at Cairo\u2019s Beltone Financial. \u201cWe are expecting the bears to continue pushing it downward towards 6,300 levels.<\/p>\n
In Dubai, property stocks helped lift the index, which gained 0.3 percent, after plans announced for a new mega project in the emirate.<\/p>\n
Dubai\u2019s Emaar Properties climbed 2.2 percent, Drake & Scull added 0.6 percent and builder Arabtec rose 1.3 percent.<\/p>\n
The emirate\u2019s ruler on Saturday unveiled a master development that appeared to include re-starting projects that were halted following a property price crash. …more<\/a><\/p>\n