Gulf shares rattled by oil price fall
Saudi stocks slumped to their weakest level in more than two weeks yesterday, hurt by the latest slump in oil prices, which also dragged most Gulf markets lower.
Saudi Arabia’s index shed 0.4 per cent to close at 7,711 points, its lowest close since October 24. Oil refiner Petro Rabigh dropped 1.7 per cent and National Commercial Bank fell 0.6 per cent.
Saudi insurance company Mediterranean and Gulf Cooperative Insurance and Reinsurance (MedGulf) was also down 1.1 per cent despite reporting a 70 per cent rise in third-quarter net profit.
Shares of Saudi Arabia’s Sahara Petrochemical fell 3.6 per cent after it declared an emergency shutdown of a petrochemical plant at its subsidiary Al Waha Petrochemical due to a technical issue.
Saudi cement shares, however, bucked the market trend as some investors hoped an eventual end to the Yemen war will boost regional cement demand for reconstruction in the country.
Najran Cement ended 3.1 per cent higher and Southern Cement surged over 6 per cent.
Abu Dhabi stocks fell 0.5 per cent, with Abu Dhabi National Energy company (Taqa) slumping 3.6 per cent as weak oil prices eclipsed strong third-quarter earnings last week.
Oil prices fell nearly 1 per cent on Friday as global supply increased and investors worried demand growth could slow, sending US crude to its longest stretch of daily declines since 1984.
The Qatar index recovered from early weakness to end 0.2 per cent higher, helped by gains in real estate and banks.
Weakness in property stocks weighed on the Dubai index , which ended 0.3 per cent lower. Emaar Properties dropped 0.8 per cent and Damac Properties fell 1.4 per cent.
In Egypt, financials weighed on the index with Commercial International Bank Egypt falling 2.3 per cent and EFG Hermes declining 1.5 per cent.
Global Telecom gained 5.9 per cent amid market speculation that its major shareholder could weigh another tender offer for the company.
The speculation was driven by the company’s announcement last week about the appointment of Naeem Financial Investments as indepenent financial adviser to evaluate “fairness value” of its shares in respect of a capital increase.