DUBAI: Saudi Arabia’s bourse slipped off a 15-month high yesterday as earnings misses from petrochemical firms spurred profit-taking, while other regional markets were mixed.
The kingdom’s petrochemical sector index lost 0.9 percent, underperforming the wider benchmark, which declined 0.6 percent.
Saudi Basic Industries Corp (SABIC), the world’s largest chemicals producer, fell 1.3 percent after two of its units posted below-forecast net profit for the second quarter.
SABIC’s earnings, which are yet to be released, will feel a slight pinch from its subsidiaries’ underperformance.
Yanbu National Petrochemical Co (Yansab) declined 1.7 percent and Saudi Arabian Fertilizer Co (Safco) retreated 0.2 percent.
Trading volumes were their lowest in 2013, showing little reaction to a ruling by the administrative court that threw out legal challenges to a parliamentary election set for July 27. Swift parliamentary elections are seen a positive for the country’s long-delayed $30bn development plan, analysts said.
In the United Arab Emirates, the two main markets hit fresh multi-year highs on optimism companies will report strong profit growth in their upcoming second-quarter earnings. Dubai’s index climbed 0.7 percent, extending 2013 gains to 51.4 percent. It is one of the best-performing markets globally this year. Shares in budget carrier Air Arabia rose 5.1 percent to 1.23 dirhams ($0.33).
Abu Dhabi’s benchmark advanced 0.8 percent to hit a fresh 57-month high, as financial stocks supported.
Union National Bank, which rose 3.7 percent, closed above 5 dirhams for the first time since the third quarter of 2008. National Bank of Abu Dhabi, which climbed 2.9 percent, matched the multi-year closing high set in May.
In Oman, Bank Muscat gained 1.2 percent after posting an 8.9 percent increase in second-quarter net profit, slightly ahead of analysts’ expectations. The stock outperformed the wider market, which rose 0.7 percent.
Qatar and Egypt were little moved.
reuters
