Saudi petchems under pressure despite rise

Riyadh : Saudi petrochemical stocks ended Thursday’s trading on the downside after some disappointing earnings, but key banking and property stocks helped the index close slightly higher.

Other Gulf markets were mixed.

The Saudi index closed 0.2 per cent up at 8,248 points, hovering near the level last seen in August 2015.

Petrochemicals firms were under pressure with the index’s most heavily weighted company, Saudi Basic Industries Corp , down 2.1pc. SABIC will announce its quarterly results on Sunday.

Three analysts polled by Reuters expect the company to make an average net profit of 5.8 billion Saudi riyal ($1.6 billion) in the first quarter.

Saudi International Petrochemical Co (Sipchem) dropped 4.9pc after missing earnings forecasts with a first-quarter net profit of 151 million riyals, up 65pc on year. Three analysts surveyed by Reuters had on average forecast a profit of 189 million riyals.

Alinma Bank slipped 0.4pc despite surpassing a SICO Bahrain earnings forecast for its quarterly profit of 501.5 million riyals. The bank posted a profit of 582 million
riyals.

However Al Rajhi Bank closed 0.3pc higher while property firm Dar Al Arkan gained 1.6pc, providing the index some support.

Qatar’s index lost 0.2pc after a spate of strong earnings helped recent gains. The index is up 6.6pc so far this year.

Telecommunications firm Ooredoo fell 3.3pc after reporting a 17pc decline in quarterly net profit. Ooredoo’s revenues suffered from industry-wide challenges in Indonesia, its biggest international market.

Vodafone Qatar also dropped 2pc.

Dubai’s index rose 0.6pc, with Emaar Properties jumping 3.0pc and DAMAC Properties up 1.5pc as bargain-hunting emerged in the real estate sector after recent selling.

Both stocks are down more than 15pc so far this year on anxiety about the outlook for the Dubai real estate market.

Abu Dhabi’s index was up 0.6pc. Top mover Dana Gas rose 15pc after falling for several days. .

Dana Gas, Crescent Petroleum, Dragon Oil, and Eni are among companies that sent letters to take part in Iraq’s oil and gas contract bidding round, an Iraqi oil official said on Thursday.

In Egypt, main index rose 1.3pc, helped by a 2.8pc rise in Commercial International Bank.