Gulf stock markets mostly fell yesterday as soft oil prices dampened buying, while Saudi Arabia’s index fell 0.7% on disappointing quarterly corporate results.
Etihad Etisalat (Mobily) slumped 4.2% after the Saudi telecommunications operator swung to a net profit of 18.8mn riyals ($5mn) in the second quarter, from a loss of 901mn riyals in the prior-year period, but fell short of estimates by analysts polled by Reuters who forecast a quarterly profit of 52.5mn riyals.
Construction firm Abdullah Abdul Mohsin al-Khodari and Sons tumbled 3.1% after it reported a worse-than-forecast net loss of 43.34mn riyals in the second quarter due to a slowdown in the kingdom’s building sector.
Most petrochemical shares fell as Brent oil futures flirted with $44 a barrel, hitting a fresh 11-week low.
National Industrialisation Co (Tasnee) fell 1.5% to close at 13.55 riyals after hitting a session high of 14.05 riyals.
The firm posted a quarterly net profit of 104mn riyals, beating analysts’ forecasts for a net loss of 1.2mn riyals and ending a run of five straight losses, although sales fell.
“Despite the 2Q16 positive surprise, operational issues at new facilities, a weak titanium dioxide outlook and high debt levels are key risks,” Riyadh-based NCB Capital, which has a “neutral” rating on the stock with a price target of 12.00 riyals, said in a note.
But the insurance sector was bullish after a string of quarterly results spurred interest.
Saudi Indian Company for Cooperative Insurance surged 3.3% after reporting a 774% jump in second-quarter profit before zakat (tax) to 4.48mn riyals on rising revenues.
Dubai’s index slipped 0.4% as Dubai Financial Market dropped 2.2% after the Gulf’s only listed bourse reported a 60% fall in second-quarter net profit to Dh53.5mn ($15mn). DFM said the value of shares traded on the market in the first six months of 2016 shrank 32.7% year-on-year.
But logistics company Aramex jumped 5.5% in unusually heavy trade.
After the market closed, Bloomberg reported, citing unnamed sources, that founder Fadi Ghandour had sold his entire 9.9% stake in the firm to Gulf investors including Emaar Properties chairman Mohamed Alabbar.
In neighbouring Abu Dhabi, the index slipped as the largest listed bank by market value, First Gulf Bank, lost 2.4%.
Tariq Qaqish, head of asset management at Dubai-based Al Mal Capital, said low volumes and profit-taking were the main reasons for the dip in United Arab Emirates stock markets.
Kuwait’s main index climbed 1.6% on the back of a few second- and third-tier stocks such as National Consumer Holding Co, up 220% in very thin trade.
The Kuwait 15 index, which represents only the largest and most liquid stocks, edged down 0.03%.
Egypt’s main index edged up 0.3% as non-Egyptian investors accumulated shares, while local traders cashed-out, bourse data showed.
Orascom Telecom, the most heavily traded stock on the bourse, climbed 1.9%.
Real estate investment firm Porto Group Holding jumped 3.9%.
Elsewhere in the Gulf, the Kuwait index climbed 1.6% to 5,484 points, the Oman index edged down 0.03% to 5,810 points and the Bahrain index rose 0.4% to 1,160 points.