|13 November, 2019

Mideast Stocks: Most major Gulf markets dip

DAMAC drops on poor Q3 earnings

An investor uses his mobile phone at the Dubai Financial Market.

An investor uses his mobile phone at the Dubai Financial Market.

REUTERS/Ahmed Jadallah

Most major Gulf markets slipped on Wednesday, with Saudi Arabia leading the losses amid falling oil prices, while Qatar bucked the trend on energy stocks.

Oil prices fell on Wednesday as hopes for a trade deal between the United States and China faded, weighing on the outlook for the global economy and energy demand.

Brent crude futures fell 75 cents, or 1.25%, to $61.31 a barrel by 1030 GMT, while U.S. West Texas Intermediate crude was at $56.30, down 50 cents or 0.9%.

In Saudi Arabia, the benchmark index .TASI slipped 0.7%, snapping a four-day winning streak with Al Rajhi Bank losing 0.8% and the Gulf's biggest petrochemical maker Saudi Basic Industries (SABIC) dropping 1.8%.

Qatar's index rose 0.5% as market heavyweight Industries Qatar increased 1.8% and Mesaieed Petrochemical advanced 2.8%.

Dubai's main share index dropped 0.5% with Dubai's largest listed developer Emaar Properties shedding 0.7% and courier and logistics services provider Aramex declining 2.8%.

DAMAC Properties declined 1.8% after it reported a 78% plunge in third-quarter net profit. 

DAMAC shares have fallen by around 45% this year with profits contracting in the first three quarters, according to Refinitiv data.

Among other stocks, Amlak Finance AMLK.DU plunged 5.9%. The Islamic financing firm narrowed its third quarter losses, but accumulated losses were still at 1.35 billion dirhams 

Egypt's blue-chip index ended 0.4% down, led by a 1.2% fall in EFG HERMES and a 2.7% drop in Cairo For Investment And Real Estate Development.

Eastern Co fell a further 0.3% a day after it traded ex-dividend.

In Abu Dhabi, the index edged down 0.1%, extending the losses for a sixth session consecutively. The United Arab Emirates' largest listed lender First Abu Dhabi Bank eased 0.4% and Abu Dhabi Commercial Bank dropped 2.2%.

But Abu Dhabi Islamic Bank ADIB.AD jumped 4.4%, its biggest intraday gain since April 9 this year. On Tuesday, the sharia-compliant lender said its board would consider increasing maximum limits of Non-UAE locals’ ownership of its shares. 

($1 = 3.6728 UAE dirham)

(Reporting by Shamsuddin Mohd in Bengaluru Editing by Chizu Nomiyama) ((shamsuddin.mohd@thomsonreuters.com; +918067497252;))

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