Saudi's SABIC made its largest drop in five months on Wednesday after the petrochemical producer's quarterly profit missed estimates, with investors little moved by its expectations for higher sales in 2011. SABIC, also known as Saudi Basic Industries Corp and the largest company on the Saudi bourse, fell 3.2 percent, its biggest drop since August 7 and second straight decline following Monday's 28-month high.
The state-linked firm's quarterly profit rose 27 percent to $1.55 billion, narrowly below analyst forecasts. On Wednesday, SABIC said it expected higher profitability and sales in 2011 as petrochemical prices rise to pre-crisis levels. Saudi Arabia's index dropped 0.9 percent to a two-week low.
Egypt's benchmark index fell 0.7 percent to an 11-week low, taking its losses to 7.1 percent this week as foreign investors cut exposure to Middle East markets seen as vulnerable to political instability spilling over from Tunisia. Four Egyptians set themselves on fire this week, echoing a self-immolation in Tunisia that spurred the protests which brought down president Zine al-Abidine Ben Ali.
Abu Dhabi's Aldar Properties fell 2.9 percent, resuming a decline sparked by its unveiling of a restructuring plan that will be dilutive to shareholders and also includes $2.9 billion in impairments. Dubai's index fell 0.2 percent. It is down 74 percent from a January 2008 peak as similar declines in Dubai house prices and the emirate's debt problems stymie investor hopes that shares will rebound. Shares in Doha Bank fell 3 percent after the lender's fourth-quarter profit missed estimates and it announced plans for a 15 percent capital increase, weighing on Qatar's index, which made its largest decline in eight weeks.
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