MIDEAST STOCKS – Saudi index down from peak in four years, while other Gulf markets are weak

DUBAI, March 24 (Reuters) – The Saudi stock market lost on Sunday after closing the previous week to its highest level in four years after its inclusion in the FTSE Russell Emerging Markets Index, while most markets Gulf also fell.

The Saudi index Tadawul will have a weighting of 2.9% in the FTSE Emerging All Cap Index and will join this year the benchmark emerging markets index MSCI.

The first tranche of the FTSE Russell Index started on March 18th.

The Saudi index fell by 0.5% as banks opened lower, with Al Rajhi Bank losing 0.4% and the National Bank down 0.6%.

The index is still up 11.3% since the beginning of the year due to foreign inflows before its inclusion in emerging market indices.

Saudi International Petrochemical Co (Sipchem) slid 0.8% after the resignation of its executive director, Ahmad al-Ohali, who was appointed governor of the General Authority of Military Industries.

Herfy Foods dropped 1.5% as social media called for a boycott of the fast-food chain after removing barriers to its restaurants used to preserve the privacy of its family section.

In Dubai, the stock index fell by 0.5%, which prolonged Thursday's losses, while Emirates NBD lost 1.8%.

Network International Holdings, the largest payment processor in Africa and the Middle East, announced last week its intention to be listed on the London Stock Exchange.

The Dubai-based company is jointly owned by Emirates NBD and the private equity firms Warburg Pincus and General Atlantic.

The Abu Dhabi index fell 0.4%, with a loss of 0.9% in First Abu Dhabi Bank and a 0.4% drop in the Commercial Bank of Abu Dhabi. The Islamic bank of Abu Dhabi lost 0.9%.

The Qatar index was down 0.3%. (Report by Alexander Cornwell, Edited by Jane Merriman)