Tadawul falls but valuations are still attractive

DUBAI: Most Gulf bourses fell yesterday, tracking losses in global markets over the weekend, as sentiment weakened after disappointing US jobs data, while Qatar's bourse bucked the regional trend.

In the region, Saudi Arabia's bourse fell for a third session in five. The index finished 1 percent lower at 7,378 points, trimming year-todate gains to 15 percent.

"Saudi is consolidating and it will continue to take a lead from developed markets in the near future, but in terms of outlook, valuations are still attractive and earnings were good so buying at the weakness should be the strategy," said Ahmed Raza Khan, head of research, asset management, at MEFIC Capital in Riyadh.

Khan added that the 7,250 level was an attractive entry point.

Petrochemical and banking stocks led the decline. Bellwether Saudi Basic Industries Corp. slipped 1.7 percent, Al-rajhi Bank declined 1.3 percent and Banque Saudi Fransi was down 1.6 percent.

Investors sold mid-caps in heavy trade. Dar Al-arkan and Alinma Bank fell 2.1 and 1.7 percent respectively. Emaar Economic City shed 2.3 percent.

Elsewhere, Dubai's index fell 1.4 percent to 1,560 points, its lowest close since Feb. 16.

The index broke a support level at 1,591.84 on Thursday and analysts say the next support is at 1,500 points. Dubai Financial Market, the only listed Gulf bourse, dropped 2.7 percent, bellwether Emaar Properties shed 1.9 percent and Emirates NBD slid 2.1 percent.