SABIC fails to lift Saudi

Dubai : Saudi Arabia’s stock market slid yesterday as better-than-expected earnings from Saudi Basic Industries Corp (SABIC), the largest listed company in the Gulf, failed to lift investor sentiment. The mood among investors was not helped by a decline in oil prices, weighed down by a fall in the US equities market. Shares in SABIC were flat after the company reported an 81pc year-on-year jump in second-quarter net profit to 6.70 billion riyals ($1.79bn). Analysts had on average expected 5.8 billion riyals.

While some analysts believe the stock is overvalued, it is expected to attract further buying by foreign passive funds in anticipation of the Saudi market’s entry into the MSCI and FTSE Russell emerging market indexes next year. Saudi Electricity Co (SEC), the Gulf’s largest utility firm, sank by 4.3 per cent after reporting a 17.3pc drop in second-quarter net profit as revenues from electricity services fell and financing costs rose. The results fell short of two analysts’ forecasts. Saudi Industrial Investment Group fell 7.4pc, despite reporting a big leap in second-quarter net profit to 321 million riyals, ahead of two analysts’ forecasts.

The main stock index closed down 0.7pc. In Dubai, the main index slipped 0.2pc, while Emaar Properties fell 1.7pc and Dubai Investments closed down 1.5pc. Emaar is expected to report its second-quarter results this week. Abu Dhabi Commercial Bank edged up 1.0pc after reporting a 12pc rise in second-quarter net profit on Thursday. First Abu Dhabi Bank dropped 0.7pc, continuing a decline from the end of last week after reporting a 19pc year-on-year gain in quarterly profit. The main Abu Dhabi index edged down 0.3pc. In Egypt, the main index finished 1.2pc higher, with tobacco manufacturer Eastern Co up 5.1pc. Commercial International Bank was up 0.8pc.