Saudi shares fall on Q3 earnings, rest of region soft
- Saudi index slips on disappointing third-quarter earnings.
- Alinma Bank, the most heavily traded stock, dropped 2.2 per cent
- Dubai stock index fell 0.6 per cent
- Abu Dhabi index slid 1.2 per cent
Saudi Arabia’s stock market fell in early trade on Monday after another set of disappointing third-quarter earnings. Other markets in the region were also weak in line, with the trend in Asia.
The Saudi index slipped 0.7 percent in the first hour as Alinma Bank, the most heavily traded stock, dropped 2.2 percent.
Alinma, the latest in a string of Saudi banks to report weak quarterly earnings as the slow economy increases impairment charges on loans, posted a 16.8 percent fall in third-quarter net profit to 312 million riyals ($83.2 million); analysts had on average forecast 409.1 million riyals.
Medical insurer BUPA Arabia, which had dropped 4.7 percent on Sunday after posting an 8.9 percent drop in its third-quarter net income, fell a further 3.3 percent.
Najran Cement fell 2.6 percent after reporting a 52 percent year-on-year drop in third-quarter net profit.
Top petrochemical producer Saudi Basic Industries, however, rose 0.6 percent before its quarterly earnings announcement, expected on Tuesday.
Dubai’s stock index fell 0.6 percent as district cooling firm Tabreed sank 3.5 percent in thin trade, and Emaar Malls lost 2.7 percent.
Abu Dhabi’s index slid 1.2 percent as blue chip telecommunications operator Etisalat dropped 1.3 percent. Qatar’s index edged down only 0.1 percent, supported by a 1.3 percent gain by Qatar National Bank .
National Bank of Kuwait sank 3.5 percent after reporting a 6.4 percent rise in third-quarter net profit that was in line with estimates; Kuwait’s stock index was 0.6 percent lower.