Tadawul drops 0.3% on profit-taking

05/03/2015 06:39 AST

Most Gulf stock markets edged down in slow trade on Wednesday after a mixed set of corporate news failed to boost investor sentiment.

Saudi Arabia's main Tadawul All-Share Index slipped 0.3 percent to 9,463 points after rising for three sessions in a row. The market saw some profit-taking as it approached its February peak of 9,544 points.

Makkah developer Jabal Omar was the main drag, dropping 3.7 percent. The stock had surged 32 percent since Feb. 10, when the firm said it had swung to a quarterly profit.

Makkah Construction and Development, which has a 10 percent stake in Jabal Omar, fell 1.9 percent.

Al-Hassan Ghazi Ibrahim Shaker Co. edged up 0.3 percent after signing a memorandum with South Korea's LG Electronics to discuss cooperation in supplying advanced power reactor components for new nuclear power plants in the Kingdom.

Al-Jouf Agricultural Development and Qassim Cement, two companies that will pay dividends next week, were also among the gainers, rising 1.3 and 0.8 percent respectively.

Duba''s index edged down 0.3 percent to 3,747 points as builder Arabtec fell 0.7 percent amid concerns about its $40 billion housing project in Egypt, which has stalled again.

A source familiar with the matter told Reuters that Arabtec's chairman would meet officials of Egypt's Housing Ministry on Wednesday to renegotiate the terms of the plan, after the two sides disagreed on an accord which they had previously reached.

However, logistics firm Aramex surged 4.2 percent after its board proposed a cash dividend of 14 percent or 0.14 dirham per share for 2014, up from 0.115 dirham it paid a year earlier. The 22 percent dividend hike outpaced its growth in net profit, which increased 15 percent in 2014. Abu Dhabi's benchmark inched down 0.1 percent to 4,673 points as National Bank of Abu Dhabi fell 1.5 percent. Qatar's market fell 1.3 percent as most stocks declined, continuing the pattern of seasonal outflows after dividend payouts.

Egypt's index slipped 0.2 percent to 9,461 points as some property stocks pulled back after rallying in the previous session on reports that the government would soon approve a $80 billion project to build a new capital city.

SODIC fell 0.6 percent and Medinet Nasr Housing and Development was down 1.2 percent. Meanwhile, investment firm Pioneers Holding added 0.5 percent after its chief executive Walid Zaki told Reuters that the company planned to make three more acquisitions this year in the food and real estate sectors.

This week, the company won a $33 million takeover bid for Egyptian cheese maker Arab Dairy, beating out a subsidiary of Lactalis, Europe's largest dairy group.

Reuters