Petrochemical shares drag Tadawul lower

The Tadawul All Share Index (TASI) on Tuesday slipped 0.9 percent with the main drag from the petrochemical sector as Brent crude futures were trading near a four-week low around $51.70 a barrel. Heavyweight Saudi Basic Industries Corporation (SABIC) fell 1.5 percent.
Most petrochemical makers have not yet reported earnings as the regulator granted companies an additional 15 days to publish financials since they are converting to International Financial Reporting Standards (IFRS) from the current local accounting standard.
But shares of apparel retailer and mall operator Fawaz Alhokair surged by its 10 percent daily limit for a second session in a row. On Sunday, the retailer reported a huge jump in net profit despite a small drop in sales.
Also, investors were building positions in consumer cyclical shares since the start of the week on news the government had reinstated civil servants’ allowances over the weekend.
The perks had been canceled last September as the oil-exporter resorted to austerity measures to combat lower hydrocarbon revenue. Electronics seller United Electronics added 1.4 percent.
Other Gulf markets
Stock markets in the Gulf most exposed to foreign trade held their ground on Tuesday, with Dubai and Qatar showing resilience in the face of disappointing results from blue-chip companies.
In Dubai, shares of Emirates Integrated Telecommunications (Du) lost 3 percent after reporting a net profit of 364.9 million dirhams ($99.35 million) in the three months to March 31, down 24 percent from the prior year period.
Analysts at SICO Bahrain forecast the telecommunication provider would make a net profit of 447.33 million dirhams and EFG Hermes estimated 474.02 million dirhams.
Shares of developer DAMAC Properties, which has not yet reported earnings, slumped 8 percent as they went ex-dividend on Tuesday.
Shuaa Capital fell 0.6 percent after its shares resumed trade following a press conference held earlier in the day. The investment firm swung to a first-quarter net profit of 24.8 million dirhams, from a net loss of 28.5 million dirhams in the prior-year period.
The bourse, however, gained 0.1 percent, taking its cue from the MSCI Emerging Market index, which some of the Dubai-listed shares are a constituent of, as the international benchmark traded near a one-month high. Emaar Properties added 0.1 percent.
Doha’s index closed flat as some losses were offset by gains in the two telecommunications companies. Ooredoo rose 1.2 percent and Vodafone Qatar added 1.0 percent.
In Abu Dhabi, the index rose 0.8 percent as Abu Dhabi Islamic Bank climbed 1.4 percent after it reported a 20 percent year-on-year growth in first quarter net profit to 577.5 million dirhams.
Other lenders were robust, with First Abu Dhabi Bank also adding 1.4 percent.

Source: Arab News