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Saudi Arabia’s index falls 2% to 9,438pts in broad sell-off

Saudi Arabia’s index falls 2% to 9,438pts in broad sell-off

RIYADH: Saudi Arabia’s stock index fell 2 percent to 9,438 points in a broad sell-off and petroleum sector dropped 2.6 percent within two months as oil prices extended their slide.

The earnings of petrochemicals producers, which constitute the biggest sector on Saudi Arabia’s stock market, have been hit hardest by oil’s sustained fall as their sales prices are often linked to petrochemicals prices.

Also, Saudi Arabia’s index had vastly outperformed other major Gulf markets, rising 15.5 percent this year and so the uncertainty over oil tempted short-term investors to book profits.

Brent crude oil fell to around $54 a barrel on Monday, its lowest for more than a month, on rising global inventories and signs of a possible nuclear deal with Tehran that could allow more Iranian oil exports.