Saudi Arabia’s petrochemical stocks recover in late buying and Mobily rises after its earnings narrowly beat estimates, pushing the kingdom’s index higher.
Mobily, also known as Etihad Etisalat, gains 2.8 percent after posting a 29 percent rise in second-quarter net profit.
Bellwether Saudi Basic Industries Corp (SABIC) adds 0.7 percent, Saudi Arabian Fertilizers Co (Safco) rises two percent and Saudi Kayan Petrochemicals climbs 0.9 percent.
The main benchmark climbs 0.3 percent to 6,441 points, rising from Monday’s five-week low.
“Most of the companies reported growth and the financial standing of the Saudi companies seems to be very solid, which means market has only one direction to move which is upward,” says Youssef Kassantini, a Saudi-based financial analyst.
“Technically, the market is very strong and while it may be affected briefly on a minor drawback, it should be moving back up,” he adds.
Meanwhile, Qatar’s ten largest stocks fall, dragging the index to a three-week low amid downbeat regional sentiment, while recent global markets woes also weigh.
Doha’s benchmark slips 0.7 percent to 8.382 points, its lowest close since June 30 as most Gulf Arab markets also dip.
“Although Q2 reports are coming out above expectations, it seemed to be shrugged off,” says a Doha-based trader on condition of anonymity.
Qatar National Bank and Industries Qatar each fall 0.9 percent, while Qatar Telecom (Qtel) sheds 0.3 percent.
“We are noticing selective buying on certain prices. Foreigners remain net sellers on the exchange,” the trader says.
Masraf Al Rayan, down 0.7 percent, and Gulf International Services, which ends flat, are two such stocks, he adds.
Abu Dhabi’s index slumps to a six-week low as banks weigh, with investors worried about the local and global economic outlook.
Abu Dhabi’s index slips 0.4 percent to 2,698 points, its lowest close since June 8.
“The (UAE) story from a macro point of view is improving but you still have issues of debt- the mood is not good,” says Sebastien Henin, portfolio manager at The National Investor.
Dubai Holding, owned by the emirate’s ruler, is in talks with lenders to restructure $10 billion of debt, while government-owned Dubai World signed a final agreement with creditors to restructure $24.9 billion in debt in March.
Banks slide, with First Gulf Bank down 1.1 percent, Abu Dhabi Commercial Bank falling 1.2 percent and Union National Bank dropping 1.7 percent.
Etisalat slips 0.5 percent, extending declines after reporting a 14.9 percent drop in quarterly net profit on Monday.
Competition in fixed-line services will start by year-end.
Dubai’s index dips 0.7 percent to 1,522 points, its lowest close since June 29.
“I wouldn’t be surprised to see some buyers come in as the market goes down. Investors are waiting for better prices,” Mr. Henin adds.
Heavyweight lender Emirates NBD leads declines; dropping 3.6 percent, while bellwether Emaar Properties sheds 0.3 percent. Drake and Scull retreats 1.9 percent.
Kuwait’s shares rebound from a seven-year low after the regulator, the Capital Markets Authority (CMA), said it would extend a deadline on an investment funds by-law.
Investment funds will now have until March 2012 to implement a law that says a fund is not allowed to invest more than 10 percent of its total assets in a single security, the state news agency said.
The benchmark rises 0.5 to 6,004 points, halting a three-session decline.
“The decision is too late - you will have an impact which is diluted now,” says Mr. Henin.
“We have seen poor results affecting the market plus the new rules that apply to funds. We could expect to see strong movements in the market because a lot of funds are concentrated in Kuwait.”
National Bank of Kuwait gains 3.7 percent, Zain rises 1 percent and Gulf Bank climbs 2 percent.
Kuwait Finance House drops 1.1 percent to a 12-month low, extending declines after the Islamic lender reported a 43 percent fall in quarterly net profit.