MARKET REPORT Most regional indexes end in losses
Most major Arabian Gulf markets slipped on Thursday, with a possible increase to Zakat pulling down Saudi Arabia’s banks.
Egypt’s blue-chip index was the exception, rising 1.8 per cent to 14,904 points, as its largest lender Commercial International Bank Egypt gained 2.5 per cent and El Sewedy Electric jumped 5.6 per cent. Sixth Of October Development And Investment hiked 3.1 per cent after posting a rise in fullyear operating revenue and declared its first dividend payout since 2011.
Saudi Arabia’s index was down 0.6 per cent to 8,479 points due to a sell-off in its bank stocks, with Al Rajhi Bank shedding 2 per cent and the country’s largest bank, National Commercial Bank, declining 2.1 per cent. The kingdom is considering plans to increase an Zakat paid by local banks to as much as 20 per cent, double the current rate, Bloomberg reported.
Banks have been at loggerheads with the authorities since last year over additional payments of Zakat – payment made annually under Islamic law – for years going back as far as 2002. Saudi International Petrochemical slipped 1.5 per cent. The company said potential synergies from a possible merger with Sahara Petrochemical is expected to bring an extra 175 million to 225m riyals recurrent earnings before interest, tax, depreciation and amortisation earnings per year.
The Dubai index declined 1.2 per cent to 2,595 points. Among winners were Amanat, up 3.6 per cent, insurer Aman, which put on 2.1 per cent and Aramex, which gained 0.9 per cent. Losers included Emaar Properties, dropping 3.1 per cent and Emirates NBD, sliding 1.6 per cent.
The Abu Dhabi index slipped 1.3 per cent to 4,914 points. Winners included Aldar properties, gaining 0.5 per cent and Dana Gas, which put on 0.4 per cent. First Abu Dhabi Bank lost 2.3 per cent and Agthia Group decreased 3.4 per cent.
Growth in the UAE’s non-oil sector slowed to a 28-month low in February amid weaker increase in new business, according to a survey. The reason for Gulf markets’ weakness is “probably a combination of the employment tracker at its weakest, and in general investors are getting a bit cautious and taking some money off the table,” said Vrajesh Bhandari of Al Mal Capital.