[2008-06-26]  Saudi scrips plunge on ‘arrests news’
Shares in Saudi Arabia, the Gulf’s largest market, closed sharply lower yesterday after news reports of a foiled terrorist attack on its oil fields. All Gulf markets ended in the red. Saudi shares ended 1.6% lower at 9581.34, led by petrochemical stocks.

Investor sentiment was impacted by news towards the end of the session that a large number of people were arrested in the Kingdom after planning to attack oil fields in Yanbu and the Eastern Province.

“This news will affect all shares as day traders use the news to sell, weaken sentiment and buy back at a cheaper price,” said Abduljawad al-Jhamdi, head trader for GCC equities at Riyad Capital.

The market is also likely to be impacted negatively ahead of the Saudi Arabian Mining Co (Maaden), initial public offering which starts on July 5, said Abduljawad Al Jhamdi.

“The Halwani Bros IPO, which is currently open, is not affecting the market as it’s small, about $45mn worth of shares,” he added. The Halwani Bros. IPO ends June 30. Abu Dhabi market slipped 0.8% to 4960.01 at close, led by energy and real estate stocks.

Abu Dhabi National Energy Co (Taqa) was down 3.7% to 2.90 dirhams and Aldar Properties fell 3.5% to 12.50 dirhams.

The market broke the support of 5050 and could see a minor correction to 4856-4900, said Beltone Financial Securities in a daily note.

Dubai shares ended down 0.1% to 5454.32, undermined by Emirates NBD, down 0.4% to 11.85 dirhams. Ajman Bank was the top loser, down 9.1% to 2.61 dirhams. Ajman Bank fell 14.8% on Tuesday and 14.9% on Monday.

Dubai market fell 1.1% on Tuesday and on 1.4% Monday.

Kuwait’s market fell 0.4% to 15598.70 at close, led by blue chip companies, reversing eight straight sessions of gains.

Agility was down 3.2% to 1.220 dinars, Zain slipped 1.2% to 1.620 dinars and National Bank of Kuwait fell 1.1% to 1.880 dinars.

Bahrain shares fell 0.3% to 2841.87 at close, led by banks and insurance firms. The Muscat stock market closed down 0.3% to 11512.62, undermined by banks.
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