DUBAI: Brent crude edged up 0.5 percent in Asian trade, after China cut bank reserve requirements, but it still traded below $55 per barrel. It had plunged 5.5 percent in the previous session.
Gulf stock markets may end the week on a soft note after oil prices tumbled and local companies announced a mixed set of fourth-quarter results.
Earlier this week, a rally by oil fuelled hopes that the commodity had bottomed out, which lifted all stock markets in the Gulf. Oil’s renewed volatility was followed by pull-backs in the Saudi Arabian and Dubai stock markets on Wednesday, and this may now spread to other bourses in the region.
Oman’s Raysut Cement reported a 9.2 percent increase in fourth-quarter profit after tax on Thursday that missed analysts’ estimates by a wide margin, according to Reuters calculations. The company made a profit of 6.55 million rials ($17.0 million); analysts had expected 7.55 million rials.
Another disappointing earnings statement came from Abu Dhabi’s Dana Gas , which said on Thursday it had swung to a net loss in the fourth quarter.
Dubai courier Aramex delivered a more positive earnings report, beating estimates with a 17 percent rise in fourth-quarter net profit. The company made 89.4 million dirhams ($24.3 million) in the quarter against an average estimate of 83.8 million dirhams.
Saudi Arabian retailer Jarir Marketing may rise after hiking its fourth-quarter dividend to 1.85 riyals from 1.40 riyals a year ago.
