Saudi Arabia’s index TASI slumped to a two-week low as uncertainty over future bank provisions and stuttering oil prices weighed on sentiment.
SABB fell 2.3 percent and Al-Rajhi Bank dropped 0.8 percent.
“Earnings visibility for banks is low and investors can’t make a short-term call on what the numbers will be like in the coming quarters,” said Jithesh Gopi, head of research at SICO investment bank.
This uncertainty was because of a lack of clarity over likely future provisions, Gopi said.
Saudi Arabia’s central bank sees no risk to the country’s banking system from two troubled conglomerates but it has set up a panel to examine the two and take appropriate action, the bank’s governor said on Tuesday.
The index fell 0.5 percent to 5,634 points, its sixth straight reverse and lowest close since Aug 19. Volumes increased by a sixth from Monday.
“Saudi Arabia was up about 17 percent year-to-date so it has done well compared to most other Gulf markets,” said Gopi.
“Trading is becoming more stock specific and it depends on the different time horizons of investors — stocks that look attractive from a medium- to long-term view, but may necessarily offer much potential to short-term traders.”
Oil was up 0.2 percent at $70.14 a barrel, recovering from an intraday low of $69.53. Crude fell 3.2 percent the day before as a slump in Chinese equities raised concerns about future energy demand.
Saudi Arabia’s index TASI was the second best performing Gulf Arab benchmark this year, rising 17.3 percent, and was second only to Abu Dhabi ADI, which was up 21.9 percent.
Late selling pressure dragged Dubai’s index to its second straight decline as investors booked profits from a recent rally after downbeat signals from US stocks.
The benchmark fell 1 percent to 1,896 points, its largest one-day reverse for two weeks as volumes hit a three-week high.
fell 2.6 percent after hitting a 10-week high earlier in the session, while Arabtec dropped 1.7 percent.
plunged 5.1 percent after moving in a 21-percent range during the session as speculators played with the stock.
On Saturday,
Shuaa
said it would issue 515 million shares to Dubai Banking Group (DBG), implementing an agreement to resolve a long-running bond dispute.
Abu Dhabi’s index rose for a third session running, climbing 0.5 percent to 2,913 points, a new 11-week closing high.
added 1.9 percent, but Aabar Investments dropped 6.7 percent after it reported a $594 million second-quarter loss.
Three of Kuwait’s five largest stocks declined, condemning the index to its third straight reverse.
fell 4 percent a day after an extraordinary meeting at which
Zain
‘s shareholders voted to scrap individual ownership limits, while its chief executive Saad al-Barrak said the firm was talking to a number of partners concerning its African units.
Removal of the ownership cap means any local or foreign investor would be free to bid for control of the firm as a whole, though Barrak said no talks were taking place concerning divestments at group level.
‘s shares surged 38 percent in the seven weeks to Monday as rumours circulated over the possible sales of Zain or some of its units.
lost 1.6 percent.
Commercial Bank of Kuwait
dropped 1 percent after its chairman said it plans to book provisions in the third quarter and has no intention to raise its capital.
The index fell 0.5 percent to 7,874 points, despite a slight rise in volumes from the day before.
Banks lifted Qatar’s index to its highest finish for 11 weeks, despite sliding volumes.
climbed 1.5 percent and
Doha Bank
added 1.4 percent, but
Industries Qatar
slipped 0.6 percent.
The index edged up 0.4 percent to 7,147 points, its highest close since June 15.
Bahrain’s measure ended lower for the second session in three, slipping 0.6 percent to 1,527 points, following strong selling in
Gulf Finance House
, which fell 3.9 percent.
Further gains in
National Bank of Oman (NBO)
helped Oman’s index claim a new 42-week closing high, shrugging off losses in other blue chips.
surged 3.1 percent to be up 10.6 percent this week as the stock caught up with recent benchmark gains. It is also the most active stock, accounting for about a sixth of all shares changing hands on the index.
‘s rise contrasted with rival lender
Bank Dhofar
, which dropped 3.8 percent.
With the exception of
NBO
, most trading is concentrated in the smaller names as
Oman Investment and Finance Co
surged 9.9 percent and
Construction Materials Industries
ended flat after both enjoy brisk trading.
Unlike many other Gulf benchmarks, trading on Oman’s index was buoyant, helping it climb 0.6 percent to 6,380 points, its highest finish since Nov. 11 last year.
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