Petrochem stocks fall as Saudi index extends drop

Petrochemical stocks weighed on Saudi Arabia's index as investors digested the last of the fourth-quarter earnings.

Regional bellwether Saudi Basic Industries Corp (SABIC) fell 1.1 percent. The chemicals giant posted a 10-percent drop in quarterly profit last week, missing forecasts.

Declining global demand has weighed on petrochemical product prices.

"SABIC drove the market down and investors are still digesting the earnings," said Turki Fadaak, head of research at Al Bilad Investment. "But the end of the week, the short-term picture will become clear as to the direction of the market."

National Industrialization dipped 1 percent, Advanced Petrochemical shed 2 percent and Nama Chemicals dropped 3.8 percent.

Banks were also lower, with heavyweight Al Rajhi Bank down 0.7 percent, Riyad Bank down 0.6 and Saudi Investment Bank down 1.8 percent.

Contractor Mohammad A Mojil Group extended losses, dropping 6.5 percent, after saying last week it had substantial losses in the fourth-quarter that exceeded 10 percent of its total assets.

The main index ended 0.2 percent lower at 6,451 points, down in four of six last sessions.

Qatar's benchmark slumped to a three-month closing low as investors disappointed with companies' proposed dividends continue to sell.

Most banks ended lower, with Masraf Al Rayan down 3.4 percent, Qatar Islamic Bank down 0.6 percent and Commercial Bank of Qatar down 0.4 percent.

"Although the results were good, dividends didn't meet expectations, but the fall is unjustified in my opinion on the long haul," said Amer Khan, fund manager, Shuaa Asset Management.

"There is obviously appetite when these equities get to certain levels. By no means do I think that valuations in Qatar are stretched or at a point that deserves a sell-off."

Doha's index fell 0.2 percent to 8,444 points, its lowest close since Oct. 23.

Dubai's benchmark ended 0.5 percent higher at 1,335 points.

Dubai Investments was a main support, climbing 5.4 percent.

Union Properties rose 5.8 percent. The developer has named Ahmad Khalaf Al Marri acting general manager, a bourse statement said.

Abu Dhabi's benchmark edged up 0.2 percent to close at 2,341 points.

Abu Dhabi Islamic Bank jumped 5.7 percent in thin trade.

In Oman, Renaissance Services climbed 3.5 percent, recovering from Thursday's three-year low after the company clarified concerns on re-financing issues.

"The company has finished 2011 with a positive liquid balance sheet and all financial commitments continue to be met on schedule," chief executive Stephen Thomas said in a bourse statement.

Renaissance said in November it was seeking a $380m to finance loans and consolidate facilities for unit Topaz Energy and Marine.

"The company announced a re-financing initiative, which we anticipated should be completed by now," the statement added.

Oman's index ended 0.2 percent higher at 5,592 point, lifting from Thursday's six-week low.