Banking shares boost Saudi index

Saudi Arabia’s stock market rose yesterday, buoyed by banking shares in the wake of Saudi Aramco’s release of its initial public offering prospectus, while Dubai was dragged down by financials and property stocks.

Saudi Aramco said in its prospectus that it will sell up to 0.5 per cent of its shares to individual retail investors. The Saudi market had fallen last week after analysts said that local investors could be selling other shares to shift investments to the oil producer.

In Saudi Arabia, the benchmark index was up 1 per cent at 7,875 points, with Al Rajhi Bank rising 2.5 per cent and Saudi British Bank leaping 4.1 per cent. Among other stocks, Al Gassim Investment Holding rose 1.4 per cent after it posted a third-quarter profit of 4.7 million riyals, compared with 1.2 million riyals a year earlier. Al Sorayai Trading And Industrial Group also gained 1.4 per cent after it swung to a third-quarter profit versus a loss year ago.

In Dubai, banking and real estate stocks dragged the index 1.4 per cent lower to 2,660 points, as its largest lender Emirates NBD Bank dropped 2.2 per cent and Emaar Properties was down 1.2 per cent. After the market closed, Emaar reported a 20 per cent rise in third-quarter net profit, which it attributed to a resilient performance by its property development, malls and hospitality divisions.

In Abu Dhabi, the index fell 0.7 per cent to 5,094, extending losses for a straight third session, with market heavyweight First Abu Dhabi Bank sliding 0.8 per cent and Abu Dhabi Islamic Bank decreasing 4.7 per cent.

The latter reported third-quarter net profit of Dh620m, compared with Dh589.5 million in the same period last year. However, profit was down when compared with the second quarter this year. Markets in Egypt, Oman and Bahrain were closed for religious holidays.

In Kuwait, the Premier Market index was up 1.1 per cent to 6,249 points.

In Dubai, banking and real estate stocks dragged the index 1.4 per cent lower to 2,660 points