Petchems stocks drag on Gulf indexes
Arabian Gulf stocks were mostly lower, as volatile oil prices hit petrochemical and energy firms in the Saudi market, while lower-than-expected earnings of property company Aldar Properties weighed on the Abu Dhabi market.
Abu Dhabi slipped 1.1 per cent, easing from a near fouryear high on Wednesday. Aldar Properties dropped 2.5 per cent, as investors were disappointed after the developer this week missed estimates with a 28 per cent fall in second-quarter profit, which it blamed on a revaluation of properties related to its retail portfolio.
First Abu Dhabi Bank also fell 2.4 per cent. FAB shares have gained nearly 37 per cent this year, fuelled by strong earnings and a move to expand in the Saudi market. In neighbouring Dubai, the index dropped almost 1 per cent on selling in lender Emirates NBD which declined 2.9 per cent. Contractor Arabtec also dropped 2.5 per cent, after opening higher as it reported a 24 per cent jump in quarterly profit.
Saudi stocks were down 0.4 per cent, as sharp swings in oil prices hit sentiment. Oil prices were higher yesterday, but fell over 3 per cent on concerns about a trade dispute between the United States and China.
The ongoing trade war is rattling global markets and investors fear any slowdown in the world’s two largest economies would slash demand for commodities.
Refiner Petro Rabigh fell 2.4 per cent, partly affected by a 26 per cent fall in second-quarter profit. Among other losers, petrochemicals giant Saudi Basic Industries Corp ended 0.5 per cent lower. The Qatari index fell almost 0.8 per cent, dragged down by Industries Qatar which fell 2.3 per cent despite reporting a rise in first half profits.
QNB Financial Services said in a report the result was in line with its forecast.
Industries Qatar has been one of the biggest beneficiaries of fund inflows this year after it raised the limit for foreign ownership. The stock is up 27 per cent so far this year.
Meanwhile, Russian assets tumbled yesterday as a new US sanctions move against Moscow unsettled investors, while rocky relations with Washington - along with unease about the economy - also sent Turkey’s lira to another record low.