Gulf bourses soft as oil’s fall outweighs earnings

Gulf stock markets were soft in early trade on yesterday as weaker oil prices at the end of last week outweighed a few positive corporate earnings in Saudi Arabia. Riyadh’s stock index edged down 0.2 percent in the first hour. Saudi Kayan Petrochemical climbed 2.1 percent after it swung to a net profit in the second quarter of 91.02 million Riyals ($24.3 million), ending a run of five straight quarterly losses and beating analysts’ forecast for another loss.

Alinma Bank rose 0.7 percent after reporting a 12.1 percent year-on-year rise in second-quarter net profit to 409 million riyals; the average prediction was 395.3 million riyals. But falling stocks outnumbered gainers by about two to one, with Saudi Arabian Fertilizers Co (SAFCO) dropping 0.8 percent after it said quarterly profit halved to 299 million riyals, broadly in line with an average forecast by analysts for 290.5 million riyals.

Rabigh Refining and Petrochemical Co declined 2.1 percent after it reported a 79.6 percent slide in net profit to 103.2 million riyals, blaming the fall in profit on lower prices and tighter refinery margins. Elsewhere in the Gulf, trading activity was subdued, with Dubai’s index slipping 0.5 percent as Emaar Properties fell 1.6 percent to 6.89 Dirhams, retreating from major technical resistance on its October peak of 7.01 Dirhams. In Abu Dhabi, the index was weighed down by losses in midand large-cap shares, with Dana Gas the most heavily traded stock, declining 1.7 percent. — Reuters