Gulf indexes end the week mixed

Saudi stocks extended losses yesterday after a 3 per cent plunge a day earlier, as investors were rattled by turbulence in emerging markets, while other Arabian Gulf markets were mixed with Dubai shares lifted by property stocks.

The Saudi index ended 0.4 per cent lower to 7,688 points with Saudi Basic Industries dropping 2 per cent and refiner Petro Rabigh falling 3.8 per cent.

The index is still up 6 per cent so far this year but has lost about 7.6 per cent in this quarter. Some brokers said the market was ripe for a correction after heavy selling this week.

“Currently what we see is that the premium to valuation multiples has declined,” said Mazen Al Sudairi, head of research Al Rajhi Capital. “This is because fund managers are looking to reduce equities exposure due to trade wars and especially emerging markets given the steep decline in EM currencies. In our view the probability of downside from these levels is very limited.”

On Wednesday, Saudi Arabia’s stock index dropped 3.9 per cent in late trade, falling below its 200-day average for the first time this year, before closing 3.1 per cent lower.

Abu Dhabi index was down 0.2 per cent to 4,918 points, hurt by weakness in energy and financial stocks.

Abu Dhabi National Energy Company was down by 2.6 per cent. Union National Bank, which saw big gains this week on news that it is in merger talks with Abu Dhabi Commercial Bank, was down 4 per cent.

First Abu Dhabi Bank provided some support with gains of 0.4 per cent.

Dubai index ended 0.3 per cent higher to 2,827 points, lifted by an almost 5 per cent gain in Union Properties and a 1.9 per cent rise in Emaar Development .

Insurance firm Salama surged 10 per cent after direct deals or block trades were executed on the stock on 370.7 million worth of shares at Dh0.42.

Salama traded at Dh0.54. Bank Muscat, Oman’s biggest lender, ended 1.6 per cent higher after securities firm SICO raised its target price to 0.46 rials ($1.19) and recommended a “buy” rating on the stock. The stock closed at 0.39 rials.

The benchmark Muscat index closed flat at 4,433 points.

In Kuwait, the index was up 0.2 per cent at 5,305 points.