Tadawul gains on global cues and oil price

Saudi Arabia’s stock market rose yesterday, encouraged by strong global bourses and a slight rebound in oil prices, while hopes for an interest rate cut boosted Egypt. But much of the Gulf was sluggish because of mediocre corporate earnings.

The Saudi index gained 1.2 per cent in a broad rally; gainers outnumbered losers by 140 to 39. Al Rajhi Bank added 2.9 per cent in its second heaviest trading volume this year.

Saudi Investment Bank rose 2.9 per cent after saying it would pay an annual dividend of 0.6 Saudi riyal per share, up from 0.5 riyal for 2016.

But telecommunications firm Mobily, which had plunged 7.1 per cent on Wednesday after reporting its fourth-quarter net loss more than doubled, dropped a further 2.3 per cent.

In Dubai, the index edged down 0.2 per cent as Damac Properties, which on Wednesday revealed a 47 per cent drop in fourth-quarter net profit, lost 1.2 per cent.

The biggest real estate firm, Emaar Properties, slipped 0.3 per cent after it reported a 16 per cent fall in fourth-quarter net profit to Dh1.36 billion, below Sico Bahrain’s forecast of Dh1.61bn.

Union Properties edged down 0.1 per cent after reporting an annual loss of Dh2.38bn against a year-ago profit of Dh211.4m; the figures implied a fourth-quarter loss of roughly Dh90m.

In Abu Dhabi, the index slipped 0.3 per cent as telecommunications firm Etisalat fell 0.6 per cent. It posted a 12 per cent fall in quarterly profit to Dh1.97 billion, while Sico had forecast Dh2.21bn.

Aldar Properties dropped 3.1 per cent after reporting a 28 per cent decline in full-year profit attributable to owners, partly because of a one-time charge of Dh495m. The company raised its annual dividend to 12 fils per share from 11 fils in 2016.

Qatar’s index fell 0.4 per cent as Mesaieed Petrochemical lost 1.4 per cent, despite reporting a slight rise in annual profit and a hike in its dividend to 0.7 Qatari riyal per share from 0.6 riyal.

In Egypt, the index rose 1.1 per cent as real estate developer Sodic surged 7 per cent. Economists predicted the central bank would start a gradual easing of monetary policy at its meeting after the close yesterday, thanks to falling inflation rates.