Saudi Arabia's stock market pulled back on Thursday after gaining strongly earlier in the week, while disappointing dividends and earnings weighed on other Gulf markets. The main Saudi stock index edged down 0.4 percent as some of the stocks which had driven its rally in the last few days retreated. Petrochemicals major Saudi Basic Industries dropped 2.6 percent and Samba Financial Group lost 1.0 percent.
Telecommunications operator Zain Saudi dropped 3.4 percent after its Kuwaiti parent Zain said studies into the potential sale of its transmitter towers were in "very early stages" and no decision had been made yet on the matter. News of a potential sale had lifted both stocks on Wednesday; Zain fell 1.9 percent on Thursday. Another mobile operator, Mobily, fell 2.9 percent to a 64-month closing low of 36.80 riyals. The firm widely missed analysts' forecasts last week when it reported an unexpected net loss in the fourth quarter.
However, the kingdom's largest listed real estate developers, Jabal Omar and Dar Al Arkan gained 1.9 and 0.5 percent respectively. Shares in another developer, Emaar the Economic City , jumped as much as 3.2 percent during the day after its chief executive told Reuters on Wednesday he expected stronger demand for industrial and residential property this year. But the stock then gave up all gains and closed 0.2 percent lower.
Abu Dhabi's index fell 1.3 percent as major lender National Bank of Abu Dhabi (NBAD) tumbled 5.5 percent despite beating estimates with a 28 percent rise in fourth-quarter profit. NBAD warned investors it was expecting a tougher 2015 as lower oil prices hit economic growth and increasing competition squeezes profit margins. Also, NBK Capital said in a note it was disappointed with lower-than-expected loan growth and the dividend. NBAD board proposed a cash dividend of 40 fils per share and a stock dividend of 10 percent for 2014. This compares with a cash dividend of 36 fils per share for 2013, according to Thomson Reuters data.
Disappointment over dividends also dampened Oman's market, which edged down 0.4 percent. Ahli Bank, down 3.5 percent, was the main drag as it extended losses following a proposal on Tuesday to pay the 2014 dividend only with bonus shares. The lender had paid cash dividends for the two previous years.
However, Bank Muscat gained 1.7 percent after its board proposed a cash dividend of 25 percent, an additional 15 percent payout through an issue of mandatory convertible bonds, and a 5 percent bonus share issue. It paid a similar dividend for 2013, but without bonus shares.
National Bank of Oman jumped 2.9 percent after it proposed a 2014 dividend of 17 percent cash and 10 percent bonus shares, increasing the cash portion from 15 percent a year earlier. Telecommunications firm Ooredoo Oman fell 1.7 percent after posting a 17 percent fall in fourth-quarter profit. Another Gulf mobile network operator, Vodafone Qatar, tumbled 3.9 percent, having reported a widening quarterly loss. The firm lost 68.8 million riyals ($18.9 million) in the three months to December 31, up from 53.3 million riyals in the prior-year period.
Qatar's index fell 0.7 percent as most stocks also declined. Dubai's benchmark fell 1.7 percent in another broad retreat. Egypt's bourse slipped 0.2 percent as most property stocks pulled back after rallying this week because of the pound's gradual depreciation which, some analysts say, may boost demand for real estate. Medinet Nasr Housing and Development fell 1.9 percent and SODIC lost 1.4 percent.
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