Gulf markets sluggish, Saudi edges down

Dubai : Gulf markets were mostly sluggish yesterday with Saudi Arabian index edging down 0.2 per cent with most petrochemical shares pulling back after gains in recent days.

But telecommunications firm Zain Saudi added 1.1 percent after announcing annual net profit of 12 million riyals ($3 million). It had posted nine-month profit of 57 million riyals, implying a fourth-quarter loss of 45 million riyals, below NCB Capital’s forecast of an 8 million riyal profit.

In Dubai, the index slipped 0.4 percent with decliners outnumbering advancing stocks by 22 to seven. Courier firm Aramex lost 2.3 percent.

Abu Dhabi fell 0.4 percent although Waha Capital jumped 8.5 percent in its heaviest trade since last January, to its highest level since March 2017.

A securities analyst at an Abu Dhabi bank said investors were expecting high dividends from the company and this could be a driver. But Wednesday’s move was too big to assume it was a dividend-led event, so a big transaction by a major investor may have been involved, he added.

Corporate earnings and dividend news boosted Qatar’s stock market on Wednesday.

Qatar’s stock index rose 1.1 percent in heavy trade. Foreign investors from outside the Gulf were active players in the market on Wednesday, accounting for about 27 percent of buying and about the same proportion of selling, exchange data showed.

Doha Bank gained 4.2 percent, rising above its July peak to its highest level since March. The company reported 6 percent growth in annual net profit, an acceleration from 3 percent growth in the first nine months.

Qatar Insurance fell 2.0 percent, however, after reporting annual net profit dropped to 418 million riyals ($115 million) from 1 billion riyals a year earlier, in line with expectations. It kept its cash and stock dividends unchanged.