Gulf stocks pulled down by Wall Street
Middle Eastern stock markets sank yesterday in response to Friday’s tumble on Wall Street, after US data showed the strongest annual wage growth since 2009 and raised the risk of more interest rate hikes than expected this year.
The Saudi index dropped 0.6 per cent with falling shares outnumbering gainers by 105 to 74. Saudi Arabian Mining Co (Ma’aden), which had fallen 4.9 per cent on Thursday after reporting a surprise fourth-quarter loss, lost a further 1.7 per cent.
Mediterranean & Gulf Cooperative Insurance and Reinsurance plunged 9.9 per cent after the Capital Market Authority said it might suspend or cancel trade in the stock, following the central bank’s decision to prohibit the firm from issuing or renewing policies pending a capital increase.
But Wataniya Insurance jumped 6 per cent after saying it signed a deal with National Commercial Bank to provide car insurance for vehicles sold by the bank under its financial leasing programme, which could help the company benefit from the planned lifting of the ban on women driving later this year.
Several cement shares stayed strong after a report last week said the government had started awarding contracts to establish its huge Neom business zone in the north-west of the country. Tabuk Cement, which is located near the site, rose 4.2 per cent.
Dubai’s index slid 0.8 per cent in its lowest trading volume this year as Emaar Properties, which like other real estate firms could face tougher business conditions if higher US interest rates are passed on through the Gulf’s currency pegs, fell 1.2 per cent.
Gulf Navigation dropped 4.6 per cent to Dh1.04 as some investors sold to buy into its rights issue, which began trading yesterday. The rights, which provide the opportunity to buy the stock at a price of Dh1, were the most heavily traded counter in the market.
Qatar’s index tumbled 2.7 per cent, its biggest drop since last June, with property firms particularly weak; United Development lost 3.4 per cent and Barwa Real Estate slipped 3.2 per cent.
In Egypt, the blue-chip index fell 1.4 per cent, but Global Telecom bucked the trend, rising 1.2 per cent. Alexandria Medical Services sank 7 per cent after reporting a 19 per cent fall in annual net profit.