SABIC beat fails to lift Saudi; Dubai, Abu Dhabi lower

DUBAI: Saudi Arabia’s stock market slid as better-than-expected earnings from Saudi Basic Industries Corp (SABIC), the largest listed company in the Gulf, failed to lift investor sentiment.

The mood among investors was not helped by a decline in oil prices, weighed down by a fall in the US equities market.

Shares in SABIC were flat after the company reported an 81 per cent year-on-year jump in second-quarter net profit to 6.70 billion riyals (US$1.79 billion). Analysts had on average expected 5.8 billion riyals.

While some analysts believe the stock is overvalued, it is expected to attract further buying by foreign passive funds in anticipation of the Saudi market’s entry into the MSCI and FTSE Russell emerging market indexes next year.

Saudi Electricity Co (SEC), the Gulf’s largest utility firm, sank by 4.3 per cent after reporting a 17.3 per cent drop in secondquarter net profit as revenues from electricity services fell and financing costs rose. The results fell short of two analysts’ forecasts.

Saudi Industrial Investment Group fell 7.4 per cent, despite reporting a big leap in secondquarter net profit to 321 million riyals, ahead of two analysts’ forecasts.

The main stock index closed down 0.7 per cent.

In Dubai, the main index slipped 0.2 per cent, while Emaar Properties fell 1.7 per cent and Dubai Investments closed down 1.5 per cent. Emaar is expected to report its second-quarter results this week.

Abu Dhabi Commercial Bank edged up 1.0 per cent after reporting a 12 per cent rise in secondquarter net profit on Thursday.

First Abu Dhabi Bank dropped 0.7 per cent, continuing a decline from the end of last week after reporting a 19 per cent year-onyear gain in quarterly profit.