Arab Times

Saudi, Dubai bourses fall back

Egypt stable despite forex fears

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DUBAI, Nov 12, (RTRS): Stock markets in Saudi Arabia and Dubai fell on Thursday in response to low oil prices, while Egypt’s market held steady in the face of uncertaint­y over exchange and interest rates.

Brent oil slipped to a two-month low just above $45 a barrel on Thursday, fuelling concern about austerity steps that government­s in the region may be forced to take next year. The Saudi stock index, which surged 2.0 percent on Wednesday, dropped 0.6 percent. Miner Ma’aden sank 3.1 percent.

Some major petrochemi­cal stocks such as Saudi Basic Industries were flat, while Saudi Telecom added 2.7 percent. It had surged its 10 percent daily limit on Wednesday after pledging to pay a minimum quarterly dividend for the next three years.

Dubai’s index dropped 1.5 percent to 3,265 points. Arabtec continued sliding, plunging its 10 percent daily limit, after reporting a big quarterly loss on Wednesday, citing poor industry conditions in the region. Fellow constructi­on firm Drake & Scull fell 5.2 percent.

GFH Financial slid 5.3 percent to a record low of 0.45 dirham. The company reported a third-quarter net profit attributab­le to shareholde­rs of $800,000 versus $6.0 million a year earlier, citing one-off gains in the year-earlier period.

Abu Dhabi’s index edged down 0.3 percent as Etisalat lost 1.0 percent.

Index compiler MSCI was

to announce later in the day whether it would add Etisalat to its emerging markets index after the telecommun­ications company opened its shares to foreign investment. Some investors have been betting on inclusion, but some fund managers think this is unlikely as foreigners will still be denied voting rights.

Qatar edged down 0.2 percent as Vodafone Qatar , that market’s most active stock, dropped 2.4 percent. It reported a quarterly net loss of 113.6 million riyals ($31.2 million). Analysts had forecast 90.0-102.2 million riyals.

Qatar National Bank, the Gulf’s biggest listed lender, rose 1.5 percent.

Egypt’s stock market edged up 0.1 percent after tumbling 10 percent over the previous four days because of fears of a possible currency devaluatio­n or interest rate hike, or possibly both.

Some bankers believe authoritie­s may be preparing to float the Egyptian pound — a step that could help to solve Egypt’s hard currency shortage in the long run, but would be risky in the short term.

On Thursday, the pound was steady at a central bank auction and stronger in the parallel market, and Treasury bill yields dropped marginally at an auction, which suggested the panic had eased, at least temporaril­y.

Property developer Medinet Nasr climbed 1.8 percent despite reporting nine-month profit fell to 154 million pounds ($19 million) from 162 million pounds.

Auto distributo­r GB Auto fell 2.5 percent after saying third-quarter profit jumped nearly 90 percent compared to a year earlier.

Investment bank EFG Hermes lost 1.8 percent after reporting a rise in third-quarter net profit to 120 million pounds from 100 million.

Saudi Arabia

The index fell 0.6 percent to 7,083 points.

Dubai

The index dropped 1.5 percent to 3,265 points.

Abu Dhabi

The index fell 0.3 percent to 4,200 points.

Qatar

The index edged down 0.2 percent to 10,830 points.

Egypt

The index edged up 0.1 percent to 6,807 points.

Kuwait

The index was flat at 5,766 points.

Oman

The index fell 0.3 percent to 5,848 points.

Bahrain

The index edged up 0.1 percent to 1,234 points.

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