Arcapita shockwaves weigh on Saudi bank shares

20 March 2012

The Saudi Arabian Tadawul market fell 1.28% to 7,518.66 points Tuesday. After Bahrain-based investment bank Arcapita filed for bankruptcy under chapter 11 New York on Monday, Riyadh-listed banks posted losses as a direct reaction. Alinma Bank, as the most liquid share fell 3.70%, while Al Rajhi Bank slipped 0.32%. Arab National Bank ended 1.24% lower. Dairy producer Sadafco gained 0.45%. Earlier in the day, Sadafco announced in a statement to the Tadawul market, it decided to renew the existing Murabaha deposit of 150 million Saudi Riyals maturing on 29 March 2012, with United Gulf Bank in the Kingdom of Bahrain.

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