Jeddah - Arab Today
Stock markets in the Gulf declined on Wednesday as some investors stayed away ahead of market closures next week for Eid Al-Adha holidays, and after recent gains in oil prices faded.
Riyadh’s main Tadawul All-Share Index retreated 0.8 percent in the lowest trading volume this year as investors sold shares indiscriminately, with losers outnumbering gainers 111 to 34.
The petrochemical sub-index fell 0.7 percent with Saudi Basic Industries dropping 1.2 percent. Brent crude oil, which hit a one-week high of $49.40 a barrel on Monday after Russia and Saudi Arabia agreed to cooperate on stabilising the oil market, has dropped back to $47.18.
A lack of liquidity in the stock market has plagued trade in the last several weeks, and many portfolio managers believe this will remain the case at least until third-quarter corporate earnings are published next month.
“Investors are trying to look for fundamental justifications to buy but there really aren’t any at the moment, and so many of them will stay away until September ends,” one Jeddah-based asset manager said.
Emaar the Economic City rose 2.2 percent after it said an affiliate had obtained a SR2.7 billion ($720 million) Islamic loan from banks to finance the second phase of building King Abdullah Port.
Amana Cooperative Insurance climbed 0.6 percent after the board recommended a 56.3 percent share capital reduction through a reverse stock split of 1.125 shares for every two shares held.
Dubai’s index pulled back 0.7 percent with investors booking profits in small caps. Drake & Scull dropped 1.7 percent.
But Gulf Navigation added 1.7 percent after the company said it had signed a new settlement agreement in its long debt dispute with Nordic American Tankers and that its debt to Nordic American had now been settled fully. It gave no details.
Abu Dhabi’s index edged down 0.2 percent as the most valuable company, Etisalat, dropped 0.8 percent.
Declines in blue chips weighed on Qatar’s main index, which fell 0.7 percent. The top loser was Islamic lender Masraf Al-Rayan, which lost 2.7 percent, while petrochemical producer Industries Qatar dropped 2.3 percent.
But in Kuwait, the telecommunications and banking sectors lifted the main price index by 0.3 percent. Mobile operator Zain climbed 3.1 percent and Boubyan Bank rose 1.3 percent.
Cairo’s main stock index fell 0.7 percent in the lowest daily volume for six weeks. Orascom Telecom, a stock favored by local investors, declined 1.8 percent but Palm Hills Development, the most heavily traded share on the market, rose 0.4 percent.
Source: Arab News