Tadawul index edges up 0.3%; Alinma Bank gains 1.6%

06/07/2015 08:02 AST

Saudi Arabia’s key market index edged up 0.3 percent despite a purchasing managers’ survey showing growth in Saudi Arabia’s nonoil private sector slowed in June to its lowest level since the survey was launched in August 2009.

Alinma Bank, the most heavily traded stock, added 1.6 percent.

Saudi Basic Industries climbed 1.4 percent despite weak oil prices when it announced a joint venture with South Korea’s SK Global Chemical Co. to produce polyethylene products.

Almarai gained 2.1 percent after reporting a 22.4 percent increase in second-quarter net profit.

But Riyad Bank edged down 0.4 percent after saying it was recommending a dividend of 35 halalas per share for the first half of 2015, slightly lower than 38 halalas for the first half of 2014.

Dubai’s market slipped 0.5 percent as Emaar dropped 0.6 percent. But construction firm Drake & Scull jumped 9.1 percent; it has been strong since it raised the limit for ownership by Gulf Cooperation Council nationals of its shares to 100 percent from 49 percent last Thursday.

Abu Dhabi’s index edged up 0.2 percent as Dana Gas soared 13.7 percent after saying it had obtained a favorable ruling from a London arbitration tribunal in its dispute with Kurdistan authorities over $1.94 billion of overdue receivables.

Egypt’s stock market maintained its downtrend as a weak debut by Emaar Misr, the biggest listing since 2007, further hurt sentiment.

The Egyptian index rose slightly in early trade but closed 1.2 percent lower at 8,218 points, entering a band of strong technical support between 8,125 and 8,261 points, the December and May lows.

Any break of this support would be very bearish, triggering a triangle pointing down into the 6,800-point area in the longer term.

A purchasing managers’ survey showed business activity in Egypt’s nonoil private sector grew slightly in June, ending five months of contraction.

Reuters