Blue chips help Dubai stand out

Saudi Arabia’s stock market index recorded its sixth straight session of declines on the back of weak second-quarter corporate earnings, but Dubai outperformed a weaker region as bluechips rose.

The Riyadh index slipped 0.3 per cent as shares of milk and yoghurt maker Saudi Dairy Foodstuff fell 1.3 per cent after it reported a 5.2 per cent drop in second-quarter net profit.

Its peer Aljouf Agricultural Development dropped 4.8 per cent after its second-quarter net income declines by twothirds on the year.

Saudi builder Khodari swung 1.7 per cent higher in the final hour of trade, having spent most of the session in the red. It reported a second-quarter net loss of 25.02 million riyals, wider than EFG Hermes’ estimate of 14.40m riyals. Quarterly revenue was half that of the year-earlier quarter, the company said.

Saudi Re for Cooperative Reinsurance rose 1.1 per cent after its net income in the second quarter expanded 50.6 per cent. Saudi Paper Manufacturing gained 1.5 per cent after it reported a narrower loss.

Qatar’s index, which lost 1.0 per cent on Sunday, fell a further 0.7 per cent as 20 shares declined, including the top three most valuable companies.

Nineteen other shares advanced as local and foreign funds were net buyers, bourse data showed.

In Abu Dhabi, the large cap stocks were also the main drag on the index, which fell 0.2 per cent; First Abu Dhabi Bank declined 0.5 per cent.

Bluechips were more upbeat in Dubai, with the largest listed developer Emaar Properties adding 1.1 per cent, helping to take the index 0.7 per cent higher.

The Gulf’s only listed courier Aramex rose 0.8 per cent after reporting a second-quarter net income of Dh97m, broadly in line with analysts’ expectations.

Dubai Investments lost 0.4 per cent after reporting a 12.6 per cent drop in second-quarter net profit.

Meanwhile, emerging stocks headed yesterday for the seventh straight month of gains, though rising political risks hurt asset prices in several key emerging economies, including Russia, Poland and Venezuela.

The dollar steadied near 13-month lows but MSCI’s emerging equity benchmark rose 0.3 per cent.