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Saudi lowers Gulf markets on weak earnings – MarketsMEERI News

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Meeri news

Saudi Arabia’s stock market closed underperforming its Gulf peers on Tuesday due to disappointing corporate earnings, while the Dubai index extended losses for a second session.

The benchmark index in Saudi Arabia fell 1.2%, with Retail Urban Development Co down 1.3% and Saudi Arabian Mining Co (MADEN) down 9.9%.

Maden — which saw its biggest intraday drop since December 2014 — reported a third-quarter net profit of 2.10 billion riyals ($559 million), a decline of about 48% from the previous quarter. However, profit grew by 65.3% year-on-year.

Elsewhere, Rabig Refining & Petrochemicals fell 9.8% to an 18-month low as it swung to a quarterly loss.

Shares in Saudi Aramco fell 0.1%, even as the oil behemoth posted a 39% jump in its third-quarter net income that beat analysts’ forecasts, boosted by higher crude prices and selling is Profits were slightly lower than in its record second quarter.

Among other losers, Middle East Co. for Manufacturing and Producing Paper fell 7.9%, after reporting weak third-quarter results.

Dubai’s main share index fell 0.1%, blue-chip developer Emaar Properties lost 1.5% and Union Properties fell 3.1% after posting a loss for the first nine-month period.

Most major Gulf markets slipped on weak oil prices

Farah Morad, senior market analyst at XTB MENA, said the Dubai market recorded some volatility as traders await the Federal Reserve’s next interest rate decision.

“At the same time, the market found support for the attractiveness of the current initial public offerings (IPOs) which have attracted large amounts of liquidity.”

Dubai’s Empower shareholders have increased the size of the stake being offered in an IPO to 15% from 10%, citing strong demand for the shares.

The Qatar index fell 0.2%.

According to Murad, the Qatari market returned to negative territory as natural gas prices reversed and faced uncertainty in natural gas demand, particularly in Europe.

Outside the Gulf, Egypt’s blue-chip index rose 0.5%, helped by a 1.9% gain in Abu Kir Fertilizers.

 SAUDI ARABIA     fell 1.2% to 11,530
 ABU DHABI        was flat at 10,416
 DUBAI            down 0.1% to 3,327
 QATAR            dropped 0.2% to 12,392
 EGYPT            up 0.5% to 11,433
 BAHRAIN          eased 0.1% to 1,864
 OMAN             rose 0.6% to 4,391
 KUWAIT           added 0.7% to 8,245


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