Shares in Saudi Basic Industries drop 1.6 percent to 93.75 dirhams. Company’s board proposed paying cash dividend of 2 riyals per share for second half of 2016, below year-earlier 3 riyals. Stock is up 22 percent year-to-date because of rebounding oil prices, which promise to improve profit margins
SABIC may be cutting dividend to help fund its major industrial projects under Riyadh’s economic diversification drive.
