Saudi Kayan Q2 loss may weigh on Kingdom's index

Selling pressure limited due to Ramadan lull
Petrochemical plant
By Ashford Fernandez
Tue 16 Jul 2013 01:55 PM

Shares in Saudi Kayan Petrochemical Co are likely to come under selling pressure on Tuesday after the firm posted a narrower net loss for the second quarter, but still missed analyst forecasts.

Saudi Kayan's second-quarter net loss was 238 million riyals ($63.5 million) for the three months to June 30, less than a loss of 328 million riyals in the year-earlier period.

Saudi Basic Industries Corp (SABIC), the parent firm of Kayan fell 1.3 percent on Monday after other units Saudi Arabia Fertilizers Co and Yanbu National Petrochemical also reported below-forecast earnings.

SABIC is the largest listed company in the Gulf and so downbeat sentiment on the stock usually impacts the wider Saudi market.

Selling pressure is likely to be limited due to a Ramadan lull, with many participants fasting and paying little attention to the market.

Egyptian tycoon Naguib Sawiris told Reuters he and his brothers will be "investing in Egypt like never before" after the ousting of a president he accused of bullying opponents to his rule, which could bolster confidence on Cairo's bourse.

Sawiris family controls the sprawling Orascom corporate empire.

In the United Arb Emirates, lenders Emirates NBD and First Gulf Bank may attract more investor interest after they signed a 900 million dirham ($245 million) loan facility to fund construction of a three-tower real estate project adjacent to Dubai's main thoroughfare.

The global backdrop is positive, with Asian shares inching higher in morning trade.

Brent futures held near $109 a barrel on Tuesday as forecasts of a third straight drop in weekly U.S. crude inventories raised hopes of a steady revival in demand growth in the world's biggest oil consumer.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.