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Saudi Maaden soars on debut as Saudi index slumps
Shares of Saudi Arabian Mining Co (Maaden) closed at 30.75 riyals a share, almost 54 percent higher than their initial public offering price.
Saudi Arabia's main index declined, led by Saudi Basic Industries Corp and Al-Rajhi Bank.
Maaden sold 462.5 million stocks - equivalent to 50 percent of its share capital - at 20 riyals each in July.
SABIC and Al-Rajhi ended down 2.48 percent and 1.19 percent respectively. The index ended 1.54 percent lower at 8,805.45 points.
"People were betting on 40 riyals," said Turki Fadak, head of the Arab Financial Consultancy Centre, echoing remarks by several analysts carried by newspapers last week about Maaden's price.
"It has to do with the large number of shares, 50 percent of the firm's capital, and also selling pressure by retail investors who believe that the highest price is usually attained on the first trading day."
A surge in inflation, just off a more than 30-year peak, may also have prompted many retail investors to cash-in profits quickly, Fadak added.
A senior trader, who did not wish to be identified, said investors were also reacting to the poor performance of the bourse, the Gulf's biggest loser so far this year.
"People feel under greater pressure to sell not just because of the surge in inflation but also because of the continuing downturn in the bourse this year," the trader said.
The index is down almost 19 percent this year.
Cement stocks helped extend losses on Muscat's main index into a second day as investors continued to sell after disappointing second-quarter results.
Raysut Cement Co and Oman Cement Co shed 1.43 percent and 4.51 percent respectively.
Oman Cement, the country's largest producer by market value, posted a 13.1 percent decline in second-quarter profit, missing analysts' forecasts.
"Both Raysut and Oman Cement results were below expectations and there is huge selling pressure," said Adel Nasr at United Securities.
Bank Muscat declined 0.45 percent despite posting on Sunday a record profit in the second quarter, topping analysts' forecasts.
The market, the best performer in the Gulf this year, fell more than 3 percent on Monday, its biggest one-day decline in more than six months. It closed 0.87 percent lower at 11,081.18 points.
"The market should stabilise this week," Nasr said.
Shares of Emirates Telecommunications Co (Etisalat) and Aldar Properties led Abu Dhabi to a lower close.
"The volumes and activity in the markets are very low," said Mohamed Alami at Naeem Shares & Holding.
Etisalat ended down 0.75 percent. Aldar Properties, due to announce its second-quarter results on Tuesday, declined 3.13 percent.
The measure, up almost 10 percent this year, slipped for a second session, closing 0.61 percent lower at 4,974.62 points.
Industries Qatar and Qatar National Bank led Doha to extend losses into a second consecutive session, while shares of Masraf al-Rayan slumped after announcing disappointing second-quarter results.
Industries Qatar and Qatar National ended 0.65 percent and 0.21 percent down respectively. Masraf, which is not listed on the main index, shed 5.96 percent.
"Last year, they (Masraf) sold a piece of land worth about 575 million riyals and it was recognised in the profit instead of breaking it down with regular income and other income," Amro Motasim, chief trader at Ahli Bank says.
"People compared the figures (this year) with last year and saw it was very bad."
The index closed 0.37 percent lower at 11,714.38 points.
In Dubai, a late surge in Emirates NBD and Emaar Properties boosted the index 0.27 percent to 5,422.31 points.
Emirates NBD gained 1.71 percent and Emaar 0.95 percent.
Ithmaar Bank and Bahrain Telecommunications Co end up 2.78 percent and 1.17 percent respectively. The benchmark, up just 1.6 percent this year, climbed 0.42 percent to 2,811.25 points.
National Industries Group and Kuwait Finance House lift Kuwait to a higher close.
National Industries rose 3.23 percent and Kuwait Finance gains 1.39 percent.
Kuwait's measure, up almost 19 percent this year, extended gains into a second session, closing 0.57 percent higher at 14,997.2 points.
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