TASI retreats below 7,000 as banks see cash-out

Saudi Arabia’s stock exchange on Tuesday retreated on profit-booking following its strong advance in the previous session fueled by hopes of a favorable review by the index provider MSCI.

The benchmark Tadawul All Share Index (TASI) dropped 1.3 percent to 6,953. Most sectors retreated as 117 symbols declined versus 51 gainers.

While the hopes remain intact yet—MSCI is set to make the announcement on the market classification review later today—investors cashed out of top bank stocks that had previously soared.

Additionally, petrochemical stocks also sagged in line as oil prices dropped to a seven-year low on Tuesday. Brent August contract was last trading more than 2 percent lower at $45.88.  

Volumes also softened from yesterday to the more normal levels of SAR 2.7 billion.

Banks sector fell over 2 percent as most constituents saw a sell-off. Both Samba and Saudi British Bank crashed 5 percent to SAR 22.90 and SAR 24.30 respectively.

Arab National Bank was 4 percent lower at SAR 20.06 while the heavyweight Al Rajhi Bank was nearly 2 percent lower.

Among petrochemicals, SABIC fell 1 percent to SAR 102.20. Yansab, SIIG and Basic Chemical Industries all fell around 2 percent.

In contrast, Tasnee advanced 2 percent to SAR 13.76.

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