Markets fall on weak investor sentiment

Dubai : Saudi Arabia’s stock index fell for a second consecutive day yesterday as investors dumped blue-chip stocks, while property stocks dragged down Dubai’s market.

The Saudi index closed 1.0 per cent lower after hitting a more than two-year high earlier in the week.

Saudi Basic Industries, the largest stock, was a big contributor to the decline, falling 0.9pc. Banks Samba Financial Group and National Commercial Bank also weighed on the index, falling 3.2pc and 1.3pc, respectively.

Saudi stocks have attracted huge inflows in recent months - sending the index up nearly 14pc - on anticipation of the upgrade of some companies to emerging markets indexes. But in recent days, investors have begin to view some of the banking and petrochemical stocks as expensive, analysts say. 

L’azurde Company for Jewelry surged 1.9pc after it agreed with Tamkeen Industrial & Trading Company the price and final terms for the pair to buy a competitor, Izdiad Commercial Company of Arabia.

Dubai’s index edged down 0.3pc. Emaar Properties slipped 1.5pc, while Damac Properties fell 2.2pc. Both property stocks have sagged so far this year, with Emaar down 17.3pc and Damac down 18.2pc, mainly on anxiety about the outlook for the real estate market. The most active stock in early trade was contractor Drake & Scull, which plunged 9.4pc, its lowest since May 2017.

The Qatar index moved up 0.2pc. Shares in Barwa Real Estate rose 1.6pc after it said it would seek shareholder approval to raise the non-Qatari ownership ceiling to 49pc from 25pc.

The Abu Dhabi index finished 0.4pc down. Telecoms operator Etisalat sank 0.9pc after the company on Tuesday reported flat profit growth in the first quarter.