By Mohamed Abu Meleeh
Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) fell by as much as 4.39% or 319 points last week, thus it recorded the biggest decline in four months.
The main index ended the week below the 7,000 mark at 6,949 points.
The market decline followed the decision of OPEC member countries on 4 December not to slash production quotas to boost oil prices that dropped by more than 60% since last June.
Brent price at settlement fell to $40.73 per barrel on 6 December, which is the lowest price since early 2009. U.S. crude fell by 5.80% or $2.32 to $37.65.
The market's sectors were collectively in red, led by media and publishing (-11.8%), then real estate development (-7.9%). Banks was also down by 5.18%, telecoms (-2.35%) and petrochemical industries (-2.25%).
The International Energy Agency (IEA) said in a report growth in the world's demand for oil is set to slow next year amid an "unrelenting" oversupply of crude, according to that could pile more pressure on already tumbling oil prices.
The IEA said the "first signs of a slowdown" in global oil demand had been seen in the fourth quarter of 2015, in its latest report published Friday.
"Global demand growth of 1.2 mb/d (million barrels per day) is forecast in 2016, a notable slowdown from this year's five-year high as many of the factors that contributed to a rapid increase in oil use are likely to prove temporary," the monthly report from the IEA said
Meanwhile, global markets are anticipating the decision of the U.S. Federal Reserve, in its meeting scheduled for next Tuesday and Wednesday, during which it is expected to raise interest rates, which will negatively impact markets especially those of developing countries.
The banks and petrochemical industries dominated the biggest shares in traded value, with 19.9% and 15.4% respectively. Banks came on top with a traded volume, with 26.5% followed by real estate development with 19.33%.
152 stock were in the negative territory, led by Saudi Printing (-17.73%), followed by Paper (-16.02%) and SRMG (-12.51%). Meanwhile, 14 stock were in the positive territory, topped by Metlife (+15.11%), followed by Emaar (+6.86%) and Alinma Tokio Marine (+5.4%).
Translated by Sayed Abdel Rahman
