Tadawul stabilizes

29/07/2015 06:12 AST

JEDDAH: Most Middle East stock markets fell on Tuesday as oil prices dipped to their lowest point since February, but Saudi Arabia and Egypt stabilized and edged up after leading losses in the previous session.

Brent crude was down 0.9 percent by the time all markets in the region closed, as a rout in the Chinese stock market cast further doubt over the outlook for crude demand in the world's top commodities consumer.

But the main Saudi Tadawul All-Share Index inched up 0.1 percent to 9,091 points, after dropping 2.4 percent in the previous session in response to oil's weakness. Banking blue chips, such as Al-Rajhi, up 1.0 percent, and Samba Financial Group, which added 1.8 percent, were the main supports for the benchmark along with petrochemicals giant Saudi Basic Industries Corp., which that climbed 1.0 percent.

Meanwhile, Middle East Paper Co. (MEPCO) tumbled 5.1 percent after it posted a 58 percent drop in second-quarter profit. The company then requested that its stock be suspended as it planned to announce a "material development" related to its interim earnings.

Investors remained cautious about upcoming earnings announcements and foodmaker Savola Group slipped 0.7 percent ahead of the publication of its quarterly financials.

After the market closed, Savola reported a 15.4 percent drop in second-quarter net profit, in line with its own guidance but below analyst forecasts.

All other Gulf markets closed in the red and Dubai led losses, sliding 0.9 percent to 4,110 points.

On Monday evening the emirate's land department published a report on property market activity in the second quarter which, according to NBK Capital, indicated a 53 percent drop in the total value of unit sales year-on-year.

Arab News