Most Gulf markets narrowly mixed but Dubai rises

12/04/2015 18:29 AST

Most Gulf stock markets were narrowly mixed on Sunday, influenced by a mixed set of earnings and corporate news, though Dubai rose on the back of real estate-related stocks.

Brent crude oil rose 2.3 percent on Friday and posted a 5.3 percent weekly gain on lowered expectations that an agreement on Iran's nuclear programme would result in a rapid return of more Iranian oil to the market. Meanwhile, world equity markets tested record highs on hopes for more stimulus from top central banks.

This background helped Saudi Arabia's market rise on Sunday, though the main index gave up most of its early gains and ended up just 0.1 percent.

Petrochemicals giant Saudi Basic Industries was the main support, jumping 2.0 percent on the last day its shares carried the 2014 dividend.

Shipper Bahri, which soared 9.8 percent in the previous session after more than doubling its first-quarter profit, extended gains and jumped 2.0 percent.

Most cement stocks rose after regional news website Argaam.com published a report on the kingdom's cement market, showing a 10 percent increase in total first-quarter sales. Najran Cement in particular jumped 3.0 percent as the report said it had boosted quarterly sales by 79 percent.

Qassim Cement rose 1.8 percent to 91.75 riyals after reporting a 2.3 percent increase in first-quarter profit. Riyad Capital maintained a "hold" recommendation for the stock with a 12-month target price of 104.00 riyals.

"Stable budgeted government expenditure for 2015, despite a lower oil price, should ensure steady progress on mega projects," it said in a note. "However, a fresh crackdown on illegal workers launched in March may cause a slowdown of medium to small projects and affect cement demand."

Constraints on gas availability are another negative factor as they stop cement companies from expanding their business, Riyad Capital said.

Some earnings reports disappointed investors. Saudi Investment Bank dropped 2.0 percent after posting an 8.7 percent increase in first-quarter profit. It earned 366.7 million riyals ($98 million) in the period, slightly missing the estimate of brokerage EFG Hermes, which had expected 386.0 million riyals.

Healthcare firms Mouwasat Medical Services and Dallah Healthcare rose 1.0 and 1.3 percent respectively after King Salman relieved Health Minister Ahmed al-Khatib of his post at the weekend.

While no official reason was given for his removal, it may have given some investors hope that reforms and big government projects in the sector will speed up.

Elsewhere in the Gulf, Dubai's index rose 1.4 percent. Builder Arabtec was the main support and the most heavily traded stock, surging 5.5 percent to 2.69 dirhams. The stock's trading volume spiked after it rose above 2.62 dirhams, a level from which it retreated last week.

Emaar Properties, the emirate's largest listed developer, jumped 2.1 percent. Emaar chairman Mohamed Alabbar told the Arabian Business magazine that he remained committed to the firm which he has lead since its inception in 1997, despite his participation in other real estate firms.

Markets in Abu Dhabi and Qatar were nearly flat with equal splits between gainers and losers. Kuwait inched up 0.1 percent and Oman slipped 0.1 percent. Egypt's bourse was closed for Easter.

Reuters