Saudi bank stocks slump on lawsuit news

16/04/2017 Argaam
by Brinda Darasha

The bank sector weighed on Saudi Arabia’s stock index on Sunday following news that a $4.2 billion lawsuit has been filed by several US insurers against 10 Saudi firms and banks, including Al Rajhi Bank and National Commercial Bank.

 

The Tadawul All Share Index (TASI) however recovered slightly towards the end of the session and closed 1 percent lower at 7,005.

 

The banking sector fell nearly 2 percent. Al Rajhi Bank fell 2.3 percent to SAR 64.25 while National Commercial Bank shed 2.7 percent to SAR 37.20.

 

Nearly all other banks closed in the negative. Saudi British Bank fell 2.5 percent to SAR 21.50 while   Banque Saudi Fransi was over 2 percent lower at SAR 25.50.

 

Insurance stocks were among the top decliners. Amana Insurance fell 5.5 percent to SAR 18.85. Al Rajhi Takaful was down 4 percent to SAR 44.30.

 

Meanwhile, most petrochemical stocks too slumped. SAFCO, Petrochem and Chemanol saw declines between 2 and 1 percent.

 

Sector and index heavyweight SABIC was 0.3 percent lower at SAR 99.50.

 

Saudi Kayan however closed 3 percent higher at SAR 8.75. Analysts expect it to turn profitable in Q1. 

 

Write to Brinda Darasha at brinda.d@argaamplus.com

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