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Sun 14 Oct 2012 10:15 AM

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Gulf markets downbeat on Saudi drop

Saudi shares closed 1.7 percent lower to an 11-week low on Saturday as the market reacted to lacklustre quarterly results

Gulf markets downbeat on Saudi drop
Saudi shares closed 1.7 percent lower to an 11-week low on Saturday as the market reacted to lacklustre quarterly results.

A slump in Saudi Arabia's benchmark and a bearish sentiment among global investors set the tone for further declines in the Gulf markets on Sunday.

Saudi shares closed 1.7 percent lower to an 11-week low on Saturday as the market reacted to lacklustre quarterly results, weak global stocks and a dip in energy prices.

Saudi Arabian Fertiliser Company (Safco) reported a 5.1 percent fall in third-quarter net profits, while Samba Financial Group posted a quarterly net profit rise of 2.3 percent.

US stocks slipped on Friday as investors fretted over what is expected to be a weak corporate earnings season, while gains in the euro were checked by uncertainty over whether and when Spain would request help with its finances.

Kuwait's index may see further pressure after ending at a two-week low last week, as continuing political instability and lack of government spending keep investors on the sidelines.

National Bank of Kuwait reported a 37 percent rise in third-quarter profits after markets closed on Thursday.