Gulf shares mixed

17/08/2010 00:00 AST

Kuwait’s Agility fell yesterday, declining for a second day since it reported sliding quarterly profit and auditors warned a prolonged suspension of US contracts could impact its government-linked businesses.

Middle East markets were mixed. Saudi Arabia’s index fell for a sixth trading day in seven as trading slumped to a 23-month low. Saudi Arabia’s index fell 0.2% to 6,158 points. Kuwait’s measure fell 0.2% to 6,648 points.

Dubai’s index rose 0.6% to 1,474 points. Abu Dhabi’s benchmark gained 0.3% to 2,494 points. Oman’s index dropped 0.4% to 6,276 points. Bahrain’s index rose 0.2% to 1,410 points.

“The key word in regional markets is volumes, which are low and will remain a concern everywhere including Saudi Arabia,” said Saleh al-Onazi, vice-president of principal investment at Swicorp in Riyadh.

Agility fell 2.1%. The stock had rallied since saying US prosecutors had moved to dismiss charges against a subsidiary, although it remains down 57% since it was first charged with defrauding the US military in November.

Agility posted a 52% fall in second-quarter profit.

“Agility is facing a number of challenges, including the slower-than-expected recovery from the global economic recession, the troop drawdown in Iraq, and the ongoing legal issues which will have a material impact on its profitability beyond 2010,” Global Investment House wrote in a research note.

Saudi Basic Industries Corp (Sabic) fell 0.6% and SABB dropped 0.9% as Saudi Arabia’s index resumed its slide.

“People are being a lot more cautious,” said a Riyadh-based analyst who asked not to be identified. “They realise there is a lot of volatility abroad so when there’s good news on the global economy one day, they’re not jumping back into the local market because the next day will probably bring some bad news.”

Egypt’s benchmark index tracked world stocks lower, declining for a fourth session.

Gulf Times