DUBAI: Saudi Arabia’s stock market rose strongly in heavy trade on Sunday as firm oil prices boosted petrochemical shares, while other markets in the region were mixed. Riyadh’s main Tadawul All-Share Index jumped 1.7 percent to 6,699 points, its highest finish since Jan. 5, in the largest trading volume since late August 2015. Petrochemical heavyweight Saudi Basic Industries Co. jumped 3.8 percent after oil prices rose on Friday, notching their third straight week of gains. Brent futures ended Friday up 1.3 percent on the day at $45.11 per barrel.
Fund managers said some local investors might have been buying stocks because of the positive publicity campaign surrounding the announcement, but institutions were more cautious. “This is a medium-term program so we don’t expect any immediate impact on the market,” said one.
Dar Al-Arkan, one of Saudi Arabia’s largest property developers, jumped 9.4 percent despite reporting a 60.7 percent fall in first-quarter net profit to SR57.85 million ($15.4 million), missing the SR82.1 million which analysts at NCB Capital had predicted. Another big gainer was Al-Tayyar Travel, which surged 8.7 percent in its heaviest trade for a month.
But extending last week’s disappointing set of results from Saudi retailers, United Electronics Co. (Extra) reported its first loss on record, of SR44.8 million for the first quarter of 2016. Its shares slumped 5.5 percent to SR26.00. Analysts at NCB Capital, which had forecast the company would make a net profit of SR13.1 million, said in a note the loss appeared to be due mainly to reduced sales because of lower discretionary spending, while gross margins were squeezed by discounting.
“Although results were weak, we believe margins will revive … and we maintain an overweight rating on the stock with a price target of SR46.40,” they wrote in a note. Saudi Investment Bank dropped 0.4 percent after reporting a 43 percent decline in quarterly net profit, hurt by higher expenses.
Generally, however, banks in the Kingdom and across the region have fared better than expected in the first quarter. On Thursday, Abu Dhabi Islamic Bank reported a 6.9 percent rise in quarterly net profit, aided by higher revenue and an increased customer base.
The emirate’s largest sharia-compliant bank made a net profit of 482 million dirhams, beating the 446 million dirhams which analysts at EFG Hermes had forecast. Its shares gained 3.2 percent on Sunday, although Abu Dhabi’s index fell 0.3 percent.
In Dubai, the stock index ended almost flat. Telecommunications operator du added 2.1 percent but Emaar Properties, the largest listed developer, fell 1.0 percent. Both companies have not yet reported quarterly earnings. Courier company Aramex rose 1.8 percent after reporting a 12 percent rise in first-quarter earnings, in line with analysts’ expectations. Aramex attributed the increase to growth in all regions.
Doha’s benchmark fell 1.3 percent with most blue chips dropping more than 1.0 percent. Ezdan Holding, a real estate investment company, retreated 3.7 percent. The company is due to announce earnings in the coming week. Qatar Navigation (Milaha) dropped 1.0 percent after the shipper reported a 3.6 percent fall in first-quarter net profit to 352 million riyals ($96.7 million).
Egypt’s main index fell 0.5 percent in the lowest volume recorded since the Egyptian pound was devalued in mid-March. Qalaa Holdings fell 3.2 percent after it reported a wider net loss for 2015. The investment company made a net loss of 1.12 billion Egyptian pounds ($125.56 million) versus a loss of 879.6 million pounds in the previous year.
