02/05/2011
Petchem shares drop as retail traders sell
Retail traders booked profits, weighing on Saudi Arabia’s index as petrochemical stocks led Sunday’s market declines.
The benchmark Tadawul All-Share Index (TASI) fell 0.4 percent to 6,683.81 points, declining for second day since Wednesday's 14-week peak.
The index rose 2.3 percent in April.
“We saw a resurgence in volumes that means the retail investors are heavy, so moves are more volatile,” said a Riyadh-based trader who spoke on condition of anonymity.
“I would expect that trend to continue.”
Analysts said the market must consolidate before it can move higher.
The petrochemicals index slipped 0.6 percent.
Heavyweights Saudi Basic Industries Corp.(SABIC) and Rabigh Refining and Petrochemical Co. declined 0.5 and 2.1 percent respectively.
Saudi Kayan Petrochemicals dipped 0.8 percent.
The value of Saudi traded shares reached SR4.65 billion on Sunday.
