Saudi, UAE retreat

Dubai : Stock markets in the Gulf pulled back yesterday as investors turned their attention to an expected US interest rate hike on Wednesday and the upcoming Saudi Arabian state budget for 2017.

In Riyadh, the index declined for a second straight session, falling 0.8 per cent. Trading volume shrank by roughly half from Monday’s very large amount. Investors have been readjusting their portfolios in anticipation of the 2017 budget announcement, which is expected late this month.

On Tuesday petrochemical shares remained weak, with all 14 listed producers retreating. Saudi Kayan Petrochemical closed 1.7pc lower.

Retail shares were also hit, with apparel retailer and mall operator Fawaz Alhokair slumping 5.5pc.

In Egypt, the index pulled back 0.5pc in a volatile session, with selling pressure escalating in the final hour. A little over 80pc of shares in the index declined with Orascom Telecom, the most heavily traded stock, falling 2.6pc after rising by the samepcage on Monday. The Egyptian pound hit an all time low against the U.S dollar on Monday, trading at 18.50 pounds. 

Dubai’s main index, which rose on Monday to its highest level this year and above technical resistance on its August peak of 3,624 points, pulled back 0.9pc to 3,625 points.

Trading volume shrunk by roughly a fifth from the previous session but held well above this year’s average, suggesting foreign investors remain interested in the market.

Mobile phone operator du fell 2.8pc and real estate giant Emaar Properties dropped 1.3pc.

But GFH Financial Group jumped 3.2pc in heavy trade after multilateral development bank Arab Petroleum Investments Corp bought 30pc of Falcon Cement Co, Bahrain’s largest cement producer, from GFH. The companies did not disclose a purchase price but GFH has previously valued Falcon at $120 million.

Abu Dhabi’s index closed down 0.2pc but well above its session low. Qatar’s main index, however, bucked the regional downtrend to climb 0.7pc in modest volume. The index is still down 0.5pc since the start of the year but has gained 7.9pc since Nov. 29. Qatar National Bank, the largest listed stock, was the top performer on Tuesday, rising 2.4pc.