The Saudi stock market hardly moved on Wednesday as global equities and oil prices offered little positive impetus.
The Tadawul All Share Index (TASI) closed nearly flat but Etihad Atheeb Telecommunication jumped 9.4 percent in heavy trade after saying it had signed a deal with top telecommunications operator Saudi Telecom Co. to sell some of its tower network for SR230 million ($61.3 million). STC closed 0.4 percent higher.
Banks were weak with three-quarters of the 12 listed lenders declining. Alinma Bank was the worst performer in the sector, dropping 2.3 percent.
Meanwhile, shares of two of Abu Dhabi’s top banks fell on Wednesday after fourth-quarter earnings.
National Bank of Abu Dhabi (NBAD) slid 5 percent after posting a fourth-quarter net profit of AED1.33 billion ($362 million), up 28 percent from the prior-year period and broadly in line with analysts’ forecasts. Abu Dhabi Commercial Bank lost 2.2 percent after announcing a 16 percent fall in profit.
First Gulf Bank, which is to merge with NBAD on April 1, added 0.4 percent.
The general Abu Dhabi market index fell 0.5 percent. In Dubai, the index added 0.3 percent, buoyed by advances in mid-sized companies.
Emaar Malls Group rose 0.4 percent after posting a 3.9 percent rise in fourth-quarter net profit. DAMAC Properties climbed 3 percent. The developer is set to open its Trump-branded golf course project in Dubai in coming weeks.
Qatar’s index, which was trading higher most of the day, closed flat. Qatar Electricity and Water, which was expected to announce quarterly results later on Wednesday, fell 2.2 percent.
Egypt’s main index fell 0.7 percent, taking its losses since hitting a record-high close on Jan. 17 to 6.3 percent. “This is still not a deep correction and the pullback is the normal course of action following three months of strong gains,” said a Cairo-based stockbroker.
Commercial International Bank (CIB) fell 0.8 percent to 75.80 Egyptian pounds ($4.02) after reporting a 34.8 percent rise in its fourth-quarter net income to 1.55 billion Egyptian pounds ($82.9 million). The board recommended a cash dividend of 0.50 pounds for 2016.
Analysts at Cairo-based Naeem Brokerage said that despite net income coming in line with its expectations, CIB’s results were negative because of a sharp rise in bad loans, which could result in higher provisioning in coming quarters and a contraction in net interest margins.
“The bank is unlikely to repeat a strong performance in its trading portfolio in the coming quarter, meanwhile the return on equity has declined, which directly impacts valuation,” Naeem said. It has a “reduce” recommendation on CIB with a target price of 55.2 pounds ($2.93).
http://www.arabnews.com/
GMT 06:11 2016 Wednesday ,05 October
August data shows rebound in Saudi economic activityMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor