Global drop spills over to the region
Stock markets in the Middle East that are most exposed to foreign funds were the chief losers yesterday, taking their cue from international bourses, where the mood was soured last week by growing tensions between the United States and North Korea.
The worst performer in the region was Egypt’s blue-chip index, which dropped 1.4 per cent as all but two of the 30 most valuable shares declined. The broader EGX100 fell 0.7 per cent.
Shares often traded by foreign funds were particularly weak, with investment firm EFG-Hermes dropping 4.7 per cent and Commercial International Bank shedding 1.4 per cent.
Dubai’s index fell 0.9 per cent in very thin trade, its largest single-day decline since June 21, as a little under three-quarters of listed shares fell. Emaar Properties, which is expected to report quarterly earnings in the coming days, fell 1.4 per cent.
Shuaa Capital closed unchanged after rising as much as 4.8 per cent earlier in the day after reporting a second-quarter net profit of Dh12.1 million compared with a loss of Dh50.8m a year ago.
Abu Dhabi’s index lost 1.1 per cent as four of the top five most valuable companies fell; Aldar Properties declined 2.1 per cent.
In Qatar, the index fell 0.4 per cent as 30 shares declined and only six rose. Foreign funds were net sellers, bourse data showed.
Saudi Arabia’s index edged down 0.2 per cent as Middle East Healthcare, operator of Saudi German Hospital, slumped its 10 per cent daily limit to 69.0 Saudi riyals after reporting disappointing quarterly results. In the three months to June 30, the firm made a net profit of 57.1 million riyals, down 22.9 per cent from last year and significantly below the 85.9m riyals estimated by NCB Capital.
Nevertheless, NCB Capital maintained an “overweight” rating on the stock with a price target of 95.3 riyals. “Expansion plan and attractive valuation are the stock’s key positives ... However, high account receivables are a key concern,” it said.
The Saudi insurance sector, often traded by local, shortterm speculative traders, contained some of the top performers, with Amana Insurance jumping nearly 10 per cent.