Saudi far outperforms Gulf region, rate hopes boost Egypt

Dubai : Saudi Arabia’s stock market rose yesterday, encouraged by strong global bourses and a slight rebound in oil prices, while hopes for an interest rate cut boosted Egypt. But much of the Gulf was sluggish because of mediocre corporate earnings.

The Saudi index gained 1.2 per cent in a broad rally; gainers outnumbered losers by 140 to 39. Al Rajhi Bank added 2.9pc in its second heaviest trading volume this year.

Saudi Investment Bank rose 2.9pc after saying it would pay an annual dividend of 0.6 riyal per share, up from 0.5 riyal for 2016.

But telecommunications firm Mobily, which had plunged 7.1pc on Wednesday after reporting its fourth-quarter net loss more than doubled, dropped a further 2.3pc.

In Dubai, the index edged down 0.2pc as DAMAC Properties, which on Wednesday revealed a 47pc drop in fourth-quarter net profit, lost 1.2pc.

The biggest real estate firm, Emaar Properties, slipped 0.3pc after it reported a 16pc fall in fourth-quarter net profit to 1.36 billion dirhams ($370.3 million), below SICO Bahrain’s forecast of 1.61 billion dirhams.

Union Properties edged down 0.1pc after reporting an annual loss of 2.38 billion dirhams ($649 million) against a year-ago profit of 211.4 ‍ million dirhams; the figures implied a fourth-quarter loss of roughly 90 million dirhams.

In Abu Dhabi, the index slipped 0.3pc as telecommunications firm Etisalat fell 0.6pc. It posted a 12pc fall in quarterly profit to 1.97 billion dirhams, while SICO Bahrain had forecast 2.21 billion dirhams.

Aldar Properties dropped 3.1pc after reporting a 28pc decline in full-year profit attributable to owners, partly because of a one-time charge of 495 million dirhams. The company raised its annual dividend to 12 fils per share from 11 fils in 2016.

Qatar’s index fell 0.4pc as Mesaieed Petrochemical lost 1.4pc, despite reporting a slight rise in annual profit and a hike in its dividend to 0.7 riyal per share from 0.6 riyal.

In Egypt, the index rose 1.1pc as real estate developer SODIC surged 7.0pc. Economists predicted the central bank would start a gradual easing of moentary policy at its meeting after the close on Thursday, thanks to falling inflation rates.