Saudi index halts losses

The Saudi stock index recovered in late trade to close 0.1 percent higher on Wednesday, halting two days of sharp losses following lower-than-expected earnings, and UAE bourses rebounded after recent falls. Al Rajhi Bank, the largest listed lender by market value, edged up 0.4 percent after reporting a 13.9 percent rise in quarterly profit, but slightly missing a consensus forecast.
Saudi Basic Industries Corp (SABIC) ended 0.3 percent lower after falling during the day to its lowest level since November 27. It reported a 10 percent drop in quarterly, due to lower petrochemical prices. "Petchems, as expected, have been weak and banks have also been weaker," said Farouk Miah, acting head of research at NCB Capital. "Provisioning has been higher and operating business has not been as strong as expected.
Saudi Savola Group gained 2.1 percent after its quarterly earnings beat analyst forecasts. In Abu Dhabi, the index made its largest one-day advance in two years, rising 1.7 percent and rebounding from Tuesday's milestone low. Shares in Dana Gas jumped 8.8 percent, up for a second day since Monday's all-time closing low.
The stock had plummeted on worries it would not be able to pay an outstanding $920 million on a sukuk maturing in October. The energy firm said late on Tuesday it will honour the sukuk. Telecoms operator Etisalat rose 3.7 percent, rebounding from Tuesday's 23-month low. Aldar Properties and Sorouh Real Estate surged 7.8 and 7.3 percent respectively, also recovering from recent lows.
In Dubai, Union Properties surged 12.3 percent after a newspaper said it reached a $1 billion debt deal with Emirates NBD. The lender gained 3.3 percent. Dubai's benchmark closed 1.6 percent higher, gaining for a second day since Monday's all-time low. In Qatar, the benchmark index ended 0.5 percent lower at an 11-week low. Large-caps dragged on investor concerns about fourth-quarter results.
Industries Qatar fell 1.3 percent and Qatar Gas Transport Co dipped 1.4 percent. Investors are worried about spillover impact of lower petrochemical product prices that impacted regional bellwether SABIC's quarterly earnings. "For fourth-quarter results, main concerns go now towards Industries Qatar because IQCD is on the same boat of petrochem as SABIC," said Talal Touqan, head of equity research at Al Ramz Securities.