Saudi stock market dives 2.05%

Saudi Arabia's stock index dropped over 2 percent on Monday over concerns about lack of liquidity in the market.
The Tadawul All-Share Index (TASI) plunged 2.05 percent to close below 6,000 at 5,935.96 points, only 25 points shy of the technical support on the August low.
Commenting on the development, Asim Bukhtiar, head of research at Saudi Fransi Capital, told Arab News: “Lack of catalysts and breach of psychologically important 6,000 level is pressuring the market.”
He added: “High P/E multiples are increasingly difficult to justify in an environment where even deep value stocks can't seem to tempt investors. Market is bracing for further tightening measures and potentially lackluster 3Q results.”
Uncertainty over further austerity hit the investor sentiment, according to local media.
The value of traded shares reached SR2.75 billion on Monday compared to SR1.65 billion on Sunday.
“Although volume was double that of Sunday's, the general lack of liquidity in the market is one of the greatest concerns, Reuters quoted Santhosh Balakrishnan, equity analyst at Riyad Capital, as saying.
“There has been less participation in the market comparatively, and this is the first year that there is no grand re-opening of the markets after the Eid Al-Adha holidays,” he said.
Energy and utility index was down 4.01 percent and petrochemical industries index went lower by 0.65 percent.

Source: Arab News