Gulf shares follow world markets lower

TASI 6222.03 5.87  0.09%

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SABIC 85.25 -0.25  -0.29%

RJHI 74.5 0.50  0.68%

STC 43.6 0.10  0.23%

SAMBA 55.5 0.75  1.37%

SECO 11.95 0.05  0.42%

Shares in Saudi Arabia, the Gulf’s largest market, led six out of seven regional bourses lower yesterday, amid a global meltdown in equities and geopolitical tension due to the Iran-West standoff over the Islamic republic’s nuclear plans. Only Muscat ended slightly up. The Saudi market slid 2.4% to 9293.45 at close, led by petrochemicals and banks. Saudi Basic Industries Corp (Sabic), fell 3% to 137 riyals and Al Rajhi Bank was down 2.5% to 86.75 riyals.

Saudi Arabian Fertiliser Co, a Sabic affiliate, gave up intraday gains to close 0.5% lower at 257 riyals after the company said its first half net profit was up 125% year-on-year. Mohammed al-Mady, Safco’s chairman, said in an interview with Al Arabiya TV yesterday, that the main reason for the profit increase was due to a 25%-rise in fertiliser prices in the second quarter. Banks led down after recent gains on the back of Riyad Bank, which beat market expectations on its second quarter earnings.

Dubai shares ended down 0.4% to 5362.91, undermined by Emaar Properties, down 1.4% to 10.25 dirhams. Amlak Finance slipped 2.2% to 4.54 dirhams after rising 2.7% on Monday. The company said Sunday its first half net profit rose 155% to 269mn dirhams, beating market expectations.

The market faces resistance above 5400 due to increased foreign institutional selling and will find support at 5200, said Shuaa Capital in a daily note. Dubai’s 1.2bn dirhams Drake & Scull IPO opened for subscription yesterday. Abu Dhabi market fell 0.8% to 5001.23, led by energy and real estate shares. Aabar Energy was down 5% to 4.40 dirhams and Aldar Properties slipped 2% to 12.40 dirhams.

Heavyweight Etisalat fell 0.8% to 19.95 dirhams. The UAE’s Telecommunications Regulatory Authority (TRA), is reported to have cut calling costs and barriers to switching landline operators. Kuwait’s market closed 0.2% lower at 15069.80, undermined by Agility, down 5.2% to 1.1 dinars.

Bahrain shares ended slightly lower at 2859.20, undermined by investment companies. The Muscat stock market closed up 0.2% to 11865.35, helped by services firms. Omantel gained 2.1% to 2.442 rials.