Major stock markets in the Gulf were mixed in early trade on Wednesday as corporate earnings failed to cheer investors, while the Saudi index was on course to fall for a third consecutive session.
Saudi Arabia’s benchmark index fell 0.2%, with Saudi National Bank, the country’s top lender, losing 0.5%.
The kingdom’s economic growth will likely be one of the slowest among the Gulf Cooperation Council countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.
Economists said lower oil revenues were likely to constrain investments in non-oil sectors, affecting the overall expansion of the Saudi economy in 2024.
On the other hand, Saudi Telecom Company gained 0.8%, after reporting quarterly net profit of 3.03 billion riyals ($807.76 million), up from 3.01 billion riyals a year earlier.
The telco also proposed a cash dividend of 0.40 riyal per share for the second quarter.
Major Gulf markets gain on earnings, US rate-cut hopes; Dubai eases
Al Jouf Cement rose 2.2%, as the firm signed a 104.2 million riyals contract to sell cement to Webuild S.p.A for Neom projects.
The cement manufacturer also rescheduled two bank facilities worth 528.5 million riyals from two different lenders.
Dubai’s main share index edged 0.1% higher, helped by a 5.5% jump in MashreqBank.
In Abu Dhabi, the index added 0.3%, with Abu Dhabi Islamic Bank gaining 0.5% ahead of its earnings announcement.
The United Arab Emirates’ biggest lender First Abu Dhabi Bank - which is scheduled to report its second-quarter earnings - eased 0.3%.
The Qatari benchmark lost 0.1%, hit by a 0.3% fall in petrochemical maker Industries Qatar.
Separately, Qatar Airways has ordered 20 more Boeing 777-9 planes, expanding its order book for the U.S. planemaker’s 777X family of jets to almost 100, the companies said at the Farnborough Airshow on Tuesday.
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