DUBAI - Gulf stock markets were little changed in early trade on Wednesday although builder Drake & Scull surged in Dubai despite reporting a big third-quarter loss.
Before the opening, the Saudi Arabian Capital Market Authority issued a statement saying listed companies would be exempt from publishing fourth-quarter financial statements because firms were transitioning to the International Financial Reporting Standards style of accounting.
This surprised many fund managers, but the Arabic version of the statement said the exemption applied to "preliminary" financial statements, which seemed to imply that companies would still have to release final statements at a later date.
CMA officials could not be reached to comment. Under CMA rules, interim financial statements must be released within 30 days after the end of each fiscal period and annual statements within three months after the end of each year.
The Saudi index edged down 0.1 percent in the first hour of trade with Banque Saudi Fransi falling 1.0 percent after it said chief executive Patrice Couvegnes had been dismissed and would be replaced by Rayan bin Mohammed Fayez, who resigned as CEO of food maker Savola Group.
The bank said last month it would appoint an independent team to investigate violations committed as a result of "excess powers granted to several employee incentive operations", while the central bank said it was monitoring measures taken by the bank to improve governance.
Savola shares edged up 0.3 percent in early trade.
Petrochemical firm Chemanol climbed 2.2 percent after jumping its 10 percent daily limit on Tuesday. Saudi Industrial Export, which earlier this week proposed a capital reduction to write off accumulated losses, added 3.6 percent.
In Dubai, the index edged down 0.2 percent. But Drake & Scull, the most heavily traded stock, gained 5.2 percent after reporting a third-quarter net loss attributable to shareholders of 317.6 million dirhams ($86.5 million) versus a loss of 46.3 million dirhams a year ago, while contract revenue shrank 32 percent.
The company said lack of liquidity before its recapitalisation, which has now been completed, hurt its third-quarter performance. Some investors were betting that the company had declared all its bad news in its third-quarter statement and would have a much better fourth quarter, fund managers said.
Qatar's index edged up 0.2 percent although Qatar Commercial Bank, the most active stock, fell 1.4 percent.
(Reporting by Andrew Torchia; Editing by Robin Pomeroy) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
Before the opening, the Saudi Arabian Capital Market Authority issued a statement saying listed companies would be exempt from publishing fourth-quarter financial statements because firms were transitioning to the International Financial Reporting Standards style of accounting.
This surprised many fund managers, but the Arabic version of the statement said the exemption applied to "preliminary" financial statements, which seemed to imply that companies would still have to release final statements at a later date.
CMA officials could not be reached to comment. Under CMA rules, interim financial statements must be released within 30 days after the end of each fiscal period and annual statements within three months after the end of each year.
The Saudi index edged down 0.1 percent in the first hour of trade with Banque Saudi Fransi falling 1.0 percent after it said chief executive Patrice Couvegnes had been dismissed and would be replaced by Rayan bin Mohammed Fayez, who resigned as CEO of food maker Savola Group.
The bank said last month it would appoint an independent team to investigate violations committed as a result of "excess powers granted to several employee incentive operations", while the central bank said it was monitoring measures taken by the bank to improve governance.
Savola shares edged up 0.3 percent in early trade.
Petrochemical firm Chemanol climbed 2.2 percent after jumping its 10 percent daily limit on Tuesday. Saudi Industrial Export, which earlier this week proposed a capital reduction to write off accumulated losses, added 3.6 percent.
In Dubai, the index edged down 0.2 percent. But Drake & Scull, the most heavily traded stock, gained 5.2 percent after reporting a third-quarter net loss attributable to shareholders of 317.6 million dirhams ($86.5 million) versus a loss of 46.3 million dirhams a year ago, while contract revenue shrank 32 percent.
The company said lack of liquidity before its recapitalisation, which has now been completed, hurt its third-quarter performance. Some investors were betting that the company had declared all its bad news in its third-quarter statement and would have a much better fourth quarter, fund managers said.
Qatar's index edged up 0.2 percent although Qatar Commercial Bank, the most active stock, fell 1.4 percent.
(Reporting by Andrew Torchia; Editing by Robin Pomeroy) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
