Saudi shares end flat

17/04/2011 00:00 AST

Saudi Arabian shares closed little changed as worse-than-estimated earnings at Saudi banks offset optimism surging oil prices would further bolster the economy of the world’s largest crude producer.

The 146-company Tadawul All Share Index advanced less than 0.1% to 6,604.97 at the 3.30pm close in Riyadh, the gauge’s highest level since April 11, as more than two stocks climbed for every one that dropped. The gauge declined as much as 0.2% and climbed as much as 0.4% during intra-day trading.

Al Rajhi Bank, Saudi Arabia’s largest publicly traded lender by market value, and Samba Financial Group tumbled, while Saudi Basic Industries Corp, the world’s largest petrochemicals maker, climbed to the highest level in three months.

“The market lacks direction today on mixed signals regarding bank results announced last week,” said Asim Bukhtiar, an equity analyst at Riyad Capital. “The results failed to meet lofty expectations of a dramatic turnaround in banks’ performance in the first quarter.”

Al Rajhi reported last week a 1% increase in first- quarter profit to 1.7bn riyals ($453mn), while Samba, the Kingdom’s second-largest lender, reported a 7% drop in first-quarter net income to 1.12bn riyals as income from special commissions dropped.

“Investors can’t seem to reconcile continually disappointing Samba results with an optimistic outlook,” Bukhtiar said. “We think the rebound will occur in the second quarter.”

Al Rajhi dropped 0.7% to 75.75 riyals, the lowest level since March 19, while Samba tumbled 0.5% to 54.75 riyals, the lowest since March 21.

Sabic jumped 0.9% to 109.50 riyals, the highest since January 18.

Oil rose for a third day in New York on Friday. Crude oil for May delivery climbed $1.55 to settle at $109.66 a barrel on the New York Mercantile Exchange. Prices are up 28% from a year ago.

Kingdom Holding Co dropped 4.4%, the most since March 15, to 8.70 riyals.

Gulf Times