Mideast Stocks: Saudi, Dubai hit by weak corporate earnings; Egypt edges up

DAMAC Properties touches all time low

  
A trader works at the Egyptian stock exchange in Cairo, Egypt, December 3, 2015.

A trader works at the Egyptian stock exchange in Cairo, Egypt, December 3, 2015.

REUTERS/Mohamed Abd El Ghany

Most Gulf stocks ended lower on Tuesday, with Saudi and Dubai leading the losses on the back of poor corporate earnings, while Eastern Company aided Egypt's blue-chip index.

Saudi Arabia's benchmark index declined 1%, as most of its banking stocks were in the red including Al Rajhi Bank, which tumbled 2.6%.

The lender reported an annual profit of 10.16 billion riyals ($2.71 billion), compared with 3.77 billion riyals a year ago. However, the figure was lower than analysts' average estimate of 10.64 billion riyals, according to Refinitiv data.

Mobile Telecommunications Company (Zain Saudi) dropped 9.9%, to become the top loser on the index.

The telco saw its biggest intraday fall since May 2018, a day after it ended talks with the ministry of finance aimed at converting the debt the company owed to the ministry into the firm's shares.

In Dubai, the index fell 0.8%, with Emaar Properties shedding 2%, while DAMAC Properties sank 4.6%, reaching its lowest level since it began trading.

The developer swung to a net loss of 36.9 million dirhams ($10.05 million) in 2019 from a profit of 1.15 billion dirhams a year earlier. This was the company's first yearly loss since 2010, according to Refinitiv data.

But, the index found some support from Emirates Integrated Telecommunications (du), which closed 1.6% up.

Post trading hours, the telecoms firm reported an annual profit of 1.73 billion dirhams, from 1.75 billion dirhams a year earlier.

Outside the Gulf, Egypt's index added 0.2%, supported by a 2% gain in tobacco monopoly Eastern Company.

Abu Dhabi's index was down 0.4% as Etisalat eased 1.5% and Abu Dhabi Commercial Bank slipped 0.6%.

Financial markets in Qatar were closed for a public holiday.

($1 = 3.6728 UAE dirham)

($1 = 3.7505 riyals)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Angus MacSwan) ((AteeqUr.Shariff@thomsonreuters.com; +918067497129;))

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