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Saudi Shares Slip 3.5 Per Cent on Banking Concerns

DUBAI - Saudi Arabian shares declined, led by financial companies, on concern banks will continue to suffer losses amid a deepening global recession.

Al-Rajhi Bank, the country’s largest bank by market value, fell to the lowest in more than four months.

Kingdom Holding Co., the investment company controlled by Prince Alwaleed bin Talal, also weakened to a three-month low as the United States government increased its shareholding in the New-York-basedCitigroup Inc.

Alwaleed is the largest individual shareholder in the bank.

The Tadawul All Share Index slid 3.5 per cent to 4,384.59 in Riyadh, pushing this year’s slump to 8.7 per cent.

The measure lost more than half its value last year as oil prices dropped.

“Saudi banks are not insulated from the worldwide trend we’re witnessing,” said John Sfakianakis, chief economist at Saudi British Bank, in an interview in Riyadh.

Al-Rajhi Bank fell 5.6 per cent to 47.10 riyals, the lowest since October 18. Saudi Cooperative IAIC Insurance Co., or Salama, declined for a third day. Salama, the Saudi unit of UAE-based Islamic Arab Insurance Co., dropped 8.4 per cent to 37.2 riyals.

Kingdom Holding weakened 4.8 per cent to 4 riyals, its lowest close in more than three months.