Markets end mixed in Gulf

Dubai : Saudi Arabia’s stock market fell slightly yesterday after Riyadh reported an attack on two oil tankers by Yemen’s Houthi movement, while other Gulf bourses moved little, suggesting investors don’t expect the event to have much economic impact. Riyadh said it would temporarily stop shipping oil through a Red Sea strait following the attack. But oil prices rose only modestly, with Brent crude adding 0.9 per cent to $74.59 a barrel after gaining 0.7pc on Wednesday, when the attack reportedly occurred.

“Saudi’s oil shipments that did go via the strait can easily be rerouted via the Cape of Good Hope at little additional cost and minimal delay,” London-based Capital Economics said. The Saudi stock index closed down 0.4pc as banking shares slipped, with Al Rajhi Bank and National Commercial Bank falling 0.5pc and 1.2pc respectively.

Southern Province Cement dropped 2.6pc after reporting a 62pc tumble in second-quarter net profit to 36 million riyals, far below analysts’ average forecast of 82 million riyals ($21.9 million). But National Shipping Co (Bahri), which said one of its tankers was attacked, rose 2.6pc. Many fund managers view Saudi Arabia’s stock market as richly valued, with SABIC at over 20 times trailing earnings. But major Saudi investment bank Jadwa said in a report on Wednesday that the market could rise further in coming months as active foreign funds began entering ahead of Riyadh’s entry into MSCI’s emerging market index next year.