Cement shares lift Saudi, other big markets fall

Dubai : Cement shares lifted Saudi Arabia’s stock index yesterday while other big bourses in the region were weak, with real estate shares pulling down Dubai.

The Saudi index rose 0.3 per cent as 13 of the 14 cement stocks climbed in unusually heavy trade. Jouf Cement was up 5.4pc and Tabuk Cement jumped its 10pc daily limit.

The sector reported weak 2017 earnings because of a slumping construction industry, but some investors expect a stronger 2018 as the government boosts spending under its budget plans.

A Saudi securities analyst said Tabuk led the sector up in response to a media report that the government had started awarding contracts for its NEOM project to build a huge business zone in the northwest of the country. Tabuk is located close to the site of NEOM.

The largest Saudi bank, National Commercial Bank, jumped 2.6pc because of a wave of buying in the final half-hour.

Across the whole market, however, declining stocks outnumbered gainers by 107 to 73. Petrochemical producer Saudi Kayan fell back 1.9pc; it had surged in recent days after fourth-quarter earnings which, although they featured a net loss due to a planned shutdown of facilities for adjustments and maintenance, were seen by analysts as positive.

The Dubai index fell 1.3pc as blue chip Emaar Properties sank 1.6pc; fellow real estate firms Deyaar and DAMAC also slid.

Dubai Islamic Bank, which had tumbled 4.6pc on Tuesday after announcing plans for a new share issue, fell a further 2.1pc.

The Qatari index slid 1.3pc on a wave of profit-taking across the board; falling stocks outnumbered gainers by 33 to seven. Qatar First Bank, the most heavily traded stock, dropped 0.7pc.

Egypt’s index tumbled 1.8pc with the biggest bank, Commercial International Bank, sagging 3.0pc.

But Juhayna Food Industries added 2.4pc after saying fourth-quarter consolidated net profit jumped 141pc on year as revenues gained 17pc.