12/04/2016 05:16 AST
Saudi and Egyptian stock markets corrected on Monday, while Abu Dhabi’s and Qatar’s bourses edged up, supported by the real estate sector.
With no major companies reporting earnings, Riyadh’s Tadawul All-Share Index fell 0.5 percent to 6,312 points, erasing some of the 1.4 percent gains on Sunday as profit takers cashed out.
The index fell below its critical resistance band between 6,325-6,400 points and short term technical indicators are considered overbought, making the case stronger for a correction, said a note by Riyad Capital.
Almarai, which jumped 3.6 percent after reporting on Sunday a slight rise in first-quarter net profit in a challenging market, fell back 1.3 percent.
NCB Capital said in a note that despite gross margins hitting a six-quarter low, favorable raw material pricing and a lower than expected impact of subsidy cuts, enforced by the government this year to help plug a budget gap, did less than expected damage to gross margins.
Jarir Marketing, a giant retailer which sells electronics and stationeries, fell 0.4 percent, erasing some prior session gains. On Sunday, it reported a net income drop of nearly 30 percent although sales turnover were not as extreme as the company had previously expected.
The company’s chairman, Mohammad Al-Aqeel, told CNBC Arabia late on Sunday that Jarir will push ahead with expansion plans for 2016, starting with the launch of two new branches in the second quarter. The retailer is also planning to expand to other Gulf countries and North Africa.
Dubai’s index edged down 0.3 percent, pulling away from a five-month high hit on Sunday as local traders booked profits in small and mid-cap stocks which have been the backbone of the bourses gains over the last four weeks. Investment firm Shuaa Capital, which has rallied 40 percent since a month ago, dropped 3.7 percent. Builders Arabtec and Drake and Scull were also sold off, falling 1.7 and 1.6 percent respectively.
But Union Properties, a mid-sized developer, added a further 0.6 percent, its fourth straight session of gains.
Emaar Properties fell 0.3 percent after the company said on Sunday that Abdulla Lahej had discontinued his role as group chief executive officer, adding the group chief operating officer will be handling the role, without elaborating further.
On the same day the company had announced plans to build a skyscraper surpassing its Burj Khalifa, the tallest building in the world.
In Egypt the main index dropped 0.8 percent as bourse data showed local and other Arab traders exited positions.
Shares, which have rallied since the mid-March devaluation of the currency, continued to correct for a second day, with real estate investment firm Amer Group slumping 5.0 percent. The stock is now flat since the devaluation on March 14.
Abu Dhabi, Qatar nudge up
Abu Dhabi’s stock exchange added 0.2 percent, lifted by real estate shares.
Aldar Properties rose 1.4 percent after the company said on Monday, a day ahead of Cityscape Abu Dhabi where developers exhibit planned projects, it will add new villas to its Yas Island development with a project valued at 6 billion dirhams ($1.63 billion).
But energy-related stocks fell back as investors booked profits ahead of earnings season. Dana Gas, which jumped 11.1 percent on Sunday, tumbled 6.7 percent.
In Qatar, the index edged up 0.3 percent in week high volumes, with the main support coming from real estate shares. Mazaya Real Estate Development jumped 9.9 percent.
Arab News
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