DUBAI: Saudi Arabia’s bourse made its largest one-day decline in two weeks yesterday as some investors reduced their market exposure ahead of the first quarter earnings in early April, while most other regional markets gained.
“People are trying to speculate on results — this is creating uncertainty,” said Abdullah Alawi, Assistant General Manager and head of research at Aljazira Capital.
Alawi added that analysts are biased towards companies that will benefit from local consumer spending, with retail, cement, telecom and real estate sectors all seen performing better than industrial stocks.
The kingdom’s bourse lost 0.6 percent in its largest daily decline since February 26, but it continues to trade in a tight range seen since mid-January.
Banks led declines with Riyad Bank and Saudi Investment Bank losing 3 and 3.9 percent respectively.
The petrochemical sector also declined, with Saudi Kayan Petrochemical losing 1.3 percent.
In Qatar, Barwa Real Estate tumbled 7.7 percent to a near four-year low after the developer’s annual profit slumped.
The developer’s 2012 profit fell 17 percent.
Selling pressure on Barwa has been exacerbated by government plans to list $12bn worth of assets under Doha Global Investment Company, which will pay a guaranteed a 5 percent dividend for the first year.
That is prompting investors to cut their holdings in companies currently offering a lower yield, Mckee added.
Mazaya Qatar Real Estate Development fell 5.9 percent after reaching its ex-dividend date. Doha’s benchmark slipped 0.4 percent, trimming 2013 gains to 1.8 percent.
The market has given back most of its early-year gains as investors cut positions after companies paid out dividends.
Elsewhere, UAE markets extended gains with Dubai’s index rising 0.5 percent, up for a fourth session, and Abu Dhabi’s benchmark up 0.4 percent, its third straight gain.
In Oman, the bourse climbed 0.8 percent to a 21-month high, as gains on global markets further buoyed a positive sentiment in the economy. Banks led gains, with National Bank of Oman and Bank Sohar rising 1.4 and 1.7 percent respectively.
Kuwait’s bourse extended gains, with the index advancing 0.7 percent to its highest close since February 2011. Reuters
