Saudi Arabian stocks declined the most in two weeks after the kingdom announced one of its biggest shake-ups in economic policy. Forward contracts for the riyal were poised for the highest level since 1999 on speculation the country may allow its currency to weaken. The Tadawul All Share Index sank 2.6 percent as of 12:42 p.m. in Riyadh. Saudi Basic Industries Corp., one of the world’s largest chemicals manufacturers, was the biggest contributor to declines in Saudi stocks. The kingdom reduced energy subsidies and intends to cut spending in 2016 to 840 billion riyals ($224 billion) from 975 billion riyals this year. Saudi forward contracts, which are used to bet whether Saudi Arabia will abandon its peg to the dollar in the next 12 months, jumped 230 points to 705 points. “The new reality is sinking in,” said Nabil Farhat, an Abu Dhabi-based partner at Al Fajr Securities. Petrochemical […]