"The Saudi market may be more sensitive to global growth
concerns because of the importance of petrochemicals, a major cyclically
sensitive sector which is, moreover, affected by oil demand concerns, a
potential consequence of renewed global economic uncertainty," Jarmo T.
Kotilaine, chief economist at the Jeddah-based National Commercial
Bank, said."It is clear that the regional bourses in general are
under pressure due to the global uncertainties and general market
nervousness," he said."There are instances where good news about
individual blue chip companies can help certain exchanges but the
general momentum is on the downside, especially to the extent that there
is concern about the oil price," Kotilaine said.He said the US debt deal has predictably failed to impress and there are renewed fears about the European bond markets.This is what has once again pushed up gold toward new highs, Kotilaine explained.His
remarks came as Saudi Arabian stock market was down on pressure from
global markets on Tuesday. The Tadawul All-Share Index (TASI) slipped
0.44 percent, snapping a two-day rally to close at 6,443.16 points.The other Gulf markets were mixed in lukewarm sentiment after a US debt deal.Gold
prices hit a record high and global stocks turned negative for the year
on Tuesday as investors focused on slowing global economic growth and
the euro zone's spreading credit problems.Spot gold was at $ 1,642.19 an ounce, having touched an all-time high of $ 1,643.79 earlier in the day.Kingdom
Holding Co. shares jumped after its associate firm signed a contract to
build world's tallest tower in Jeddah. Kingdom Holding shares gained
1.91 percent to SR8.Saudi Basic Industries Corp. (SABIC) shares
dropped 1.19 percent to SR104 and Yanbu National Petrochemical Co.
(Yansab) shares declined 1.47 percent SR50.25.The performance of the
Saudi stock market in July was in a negative territory. According to
Tadawul's Monthly Statistical Report for July, at the end of July TASI
closed at 6,392.13 points, lost 183.87 points or 2.80 percent over the
close of the previous month.On an YTD basis TASI dropped by 3.45
percent or 228.62 points. Highest close level for the index during the
month was 6,660.17 as on July 3.The report said total equity market
capitalization at the end of July reached SR1.27 trillion ($ 339.64
billion), decreased by 2.59 percent over the close of the previous
month.The total value of shares traded for the month of July reached
SR66.58 billion ($ 17.75 billion), down by 21.19 percent over the
previous month.The total number of shares traded reached 2.58
billion during the month of July compared to 3.82 billion shares traded
in June, decreasing by 32.39 percent.The total number of
transactions executed in July dropped by 21.91 percent to reach at 1.59
million compared to 2.04 million for the month of June.UAE markets
extended gains for a second day after sentiment was lifted by a US deal
to raise the debt ceiling, signaling a likelihood the country would
avoid a default, Reuters reported.Dubai's index climbed 0.6 percent to 1,536 points, touching a two-week high.Bellwether Emaar Properties and Arabtec advanced 1.4 percent each.In
Kuwait, the index gained 0.6 percent to 6,075 points but range-bound
activity was expected to continue until the market sees a catalyst.Egypt's bourse fell to a 12-week low on Tuesday.The Omani index slipped 0.4 percent to 5,812 points.The Qatari benchmark climbed 0.2 percent to 8,429 points.The Bahraini index decreased 0.4 percent to 1,285 points.