Saudi insurance recovers the damage

Gulf stock markets were mixed despite strong oil prices yesterday, while Saudi Arabia’s insurance sector continued to recover from last week’s losses.

The main Saudi index inched up 0.2 per cent. In the insurance sector, which sank last week on expectations for a shakeout in the sector caused by tougher regulation, Malath Insurance surged 9.9 per cent after the trading period for its rights issue ended, while Metlife AIG ANB jumped 3.6 per cent.

Banks were mixed. Alinma Bank, which had risen 2.3 per cent on Monday after it reported better-than-expected earnings, fell back 0.3 per cent.

But Riyad Bank edged up 0.8 per cent while Alawwal Bank gained 2.1 per cent.

Among petrochemical stocks, PetroRabigh added another 1.4 per cent after rising 2.1 per cent on Monday, but industry leader Saudi Basic Industries was marginally lower.

In Qatar, major bank Masraf al Rayan was almost flat after its third-quarter profit beat analysts’ estimates.

It reported a 6.5 per cent increase in net profit to 542 million riyals; EFG Hermes had forecast 502m riyals and QNB Financial Services, 508m riyals.

Qatar National Bank fell 0.5 per cent, ending a six-day winning streak after it reported solid third-quarter earnings last week.

Real estate developer Barwa, which has yet to report earnings, sank 3.3 per cent, and as a result, Qatar’s stock index fell 0.9 per cent.

“The region is dominated by retail investors, and they will tend to wait for more corporate results to decide” whether to buy stocks, said Talal Samhouri, head of asset management at Amwal in Doha. “Even the volumes are not huge these days.”

Dubai’s index edged down 0.4 per cent as Emaar Properties fell 0.6 per cent.

The Abu Dhabi Securities Exchange lost 0.8 per cent as Dana Gas extended losses and fell a further 2.7 per cent.

It has been sliding since a London court adjourned hearings last week on its attempt to avoid redeeming US$700 million of maturing sukuk.

Egypt’s main index closed flat after dropping almost 3 per cent on Monday on a weak banking sector. Commercial International Bank dropped a further 1.3 per cent.