Saudi stocks plunge to 9-day low

JEDDAH – Saudi Arabia’s bourse slumped to a nine-day low Tuesday as investors reacted to second-quarter earnings, while UAE banks were steady despite three international lenders withdrawing from debt restructuring talks with Dubai Group.

Saudi stock benchmark Tadawul All Share Index fell 0.65 percent to its lowest close since July 1 at 6,713.18 points.

Saudi Arabian Mining Company (Ma’aden), dropped 3.1 percent. It reported second-quarter net profit doubled to SR128 million ($34.13 million) Tuesday but the results fell far short of analysts’ estimates.

Banque Saudi Fransi fell 1.8 percent. It reported a 2 percent decline in quarterly profit on Monday, missing forecasts due to higher operational costs.

Zain Saudi dropped 5.1 percent to a new record low after the telecom operator started a $1.6 billion rights issue.

The telco, which has yet to make a quarterly profit, has cut its capital to alleviate accumulated losses that topped SR10 billion at March-end, with the rights issue being partly used to ease some of its debts.

Dar Al Arkan tumbled 6.3 percent in heavy trade. The stock accounted for nearly two-thirds of all shares changing hands on the index. The firm said it will repay a $1 billion Islamic bond (sukuk) at maturity July 16.

Elsewhere, UAE markets slipped, with investors unwilling to buy ahead of second-quarter earnings.

Dubai measure fell for a third day, slipped 0.2 percent to 1,488 points.
Abu Dhabi’s measure closed 0.2 percent lower to 2,475 points.
Kuwait index climbed 0.2 percent to 5,853 points.
Qatar index added 0.3 percent to 8,272 points.
Oman index dipped 0.7 percent to 5,496 points.
Bahrain measure slipped 0.2 percent to 1,115 points.
Egypt benchmark gained 0.2 percent to 4,709 points, as investors waited to see if the military leadership will challenge a move by the country’s new president to recall the parliament it dissolved. – SG/Reuters