Gulf markets slip; Saudi hit by poor Q2 earnings
Gulf stock markets mostly fell yesterday as soft oil prices dampened buying, while Saudi Arabia’s index fell 0.7 percent on disappointing quarterly corporate results. Etihad Etisalat (Mobily) slumped 4.2 percent after the Saudi telecommunications operator swung to a net profit of 18.8 million riyals ($5 million) in the second quarter, from a loss of 901 million riyals in the prioryear period, but fell short of estimates by analysts polled by Reuters who forecast a quarterly profit of 52.5 million riyals.
Construction firm Abdullah Abdul Mohsin al-Khodari and Sons tumbled 3.1 percent after it reported a worse-thanforecast net loss of 43.34 million riyals in the second quarter due to a slowdown in the kingdom’s building sector. Most petrochemical shares fell as Brent oil futures flirted with $44 a barrel, hitting a fresh 11week low. National Industrialization Co (Tasnee) fell 1.5 percent to close at 13.55 riyals after hitting a session high of 14.05 riyals. The firm posted a quarterly net profit of 104 million riyals, beating analysts’ forecasts for a net loss of 1.2 million riyals and ending a run of five straight losses, although sales fell.
“Despite the 2Q16 positive surprise, operational issues at new facilities, a weak titanium dioxide outlook and high debt levels are key risks,” Riyadh-based NCB
Dubai’s index slipped 0.4 percent as Dubai Financial Market dropped 2.2 percent after the Gulf’s only listed bourse reported a 60 percent fall in second-quarter net profit to 53.5 million dirhams ($15 million). DFM said the value of shares traded on the market in the first six months of 2016 shrank 32.7 percent year-on-year.
But logistics company Aramex jumped 5.5 percent in unusually heavy trade. After the market closed, Bloomberg reported, citing unnamed sources, that founder Fadi Ghandour had sold his entire 9.9 percent stake in the firm to Gulf investors including Emaar Properties chairman Mohamed Alabbar. In neighboring Abu Dhabi, the index slipped as the largest listed bank by market value, First Gulf Bank, lost 2.4 percent. Tariq Qaqish, head of asset management at Dubai-based Al Mal Capital, said low volumes and profit-taking were the main reasons for the dip in United Arab Emirates stock markets.
Kuwait’s main index climbed 1.6 percent on the back of a few second- and third-tier stocks such as National Consumer Holding Co, up 220 percent in very thin trade. The Kuwait 15 index, which represents only the largest and most liquid stocks, edged down 0.03 percent. Egypt’s main index edged up 0.3 percent as non-Egyptian investors accumulated shares, while local traders cashedout, bourse data showed. Orascom Telecom, the most heavily traded stock on the bourse, climbed 1.9 percent. Real estate investment firm Porto Group Holding jumped 3.9 percent. — Reuters