Valuation woes hit Saudi, DSI hurt Dubai

Dubai : Saudi stocks slid 0.6 per cent yesterday as concerns grew about rich valuations for blue-chip stocks after the region’s biggest stock market hit a more than a two-year high last week.

Most Gulf markets were lower with Dubai and Qatar both falling more than 1pc.

Al Rajhi Bank dropped 1.9pc despite reporting a 7.3pc rise in first-quarter net profit yesterday, marking the ninth quarter of earnings growth in a row.

Property firm Dar Al Arkan Real Estate, a favourite stock among retail investors, dropped 3pc.

The Saudi benchmark index has eased after surging past the 8,300-point level last week to its highest level since August 2015. Yesterday, it closed at 8,158
points.

In the week through last Thursday foreigners were net sellers to the tune of $48 million, stock exchange data showed.

Dubai stocks fell 1.2pc, hurt by selling in DAMAC Properties which tumbled 6.9pc, while contractor Drake and Scull (DSI) fell 3.3pc on news that it did not get approval to increase its capital via a new strategic
partner.

DSI had plunged nearly 10pc earlier, hitting an all-time intraday low of 1.10 dirhams. However, it erased some of its losses after an announcement by Abu Dhabi investor Tabarak that it has not sold any shares in the company and reassured on its long-term commitment. Tabarak owns 5.5pc of DSI.

Emaar Properties bucked the market, rising 0.7pc after reporting an 8.5pc increase in net profit yesterday on the back of strong contributions from its shopping malls business despite a weaker property market.

In Qatar, Vodafone Qatar rose more than 1.6pc in early trade, but quickly gave up most of its gains due to retail selling in the Qatar market. It was down 1.8pc at the close.

The company recorded a net profit of 17.5 million riyals ($4.8 million) for the first quarter, its first ever quarterly profit and rebounding from a net loss of 74.2 million in the first quarter of 2017.

Qatari stocks were down 1.1pc, weighed down by financials. Qatar National Bank dropped 1.2pc.

Property firm Ezdan Holding plunged 6.9pc after it reported a sharp drop in net profit a day earlier.

The company reported a first-quarter profit of 103 million riyals ($28.30 million), compared to 946 million riyals a year earlier, largely due to the sale of investment funds by some of its group subsidiaries.