Cement makers stir Saudi rally

Saudi Arabia’s stock market gained yesterday, lifted for a second session by a results-driven rally in cement producers, while Dubai’s slipped after Emaar Properties traded ex-dividend and its shares hit a one-month low. Saudi Arabia’s index rose 0.6 per cent, with Umm Al Qura Cement the top gainer with a 9.9pc leap after reporting a significant rise in first-quarter net profit. Most Saudi cement producers gained for the second straight day after strong first-quarter results, driven by higher selling prices and volume. All 14 cement producers were trading in positive territory, with Southern Province Cement adding 9.8pc and Northern Region Cement gaining 8.1pc.

There is a positive view on the cement sector due to expectations of a rise in demand as construction picks up, especially in mega projects, Riyad Capital’s Muhammad Faisal Potrik said. Dubai’s index slid 0.6pc, with Emaar Properties falling 3.3pc to a one-month low as the stock traded ex-dividend. Air Arabia slid 2pc after the budget airline said it is likely to order 100 or more Airbus or Boeing jets within the next three to four months.

The Abu Dhabi index traded flat, reversing some early losses. ADNOC Distribution, the fuel distribution arm of Abu Dhabi National Oil Company (ADNOC), gained 1.2pc after reporting a 6.6pc rise in its first-quarter profit. Abu Dhabi Commercial Bank (ADCB) closed 1.8pc lower on its first trading day as a new entity following its three-way merger with Union National Bank and Al Hilal Bank to create the third biggest bank in the UAE.