Saudi petchem stocks fall 0.4%

JEDDAH: Gulf bourses rose on Monday in line with a global equities rally due to the Greek bailout agreement, but a drop in oil prices limited gains in the region.
Saudi Arabia’s bourse was the weakest performer on Monday and edged up just 0.2 percent.
The petrochemical sector index fell 0.4 percent, although that was to a large extent because of Saudi Arabia Fertilizers Co. (SAFCO), which dropped 3.1 percent as it went ex-dividend.
But other sectors were mostly positive, supported by some strong second-quarter earnings. Food maker National Agriculture Development Co. surged 5.9 percent after posting a 25.4 percent year-on-year increase in quarterly profit.
National Shipping Co. of Saudi Arabia (Bahri) added 0.9 percent. It said after trading closed that its second-quarter net profit more than doubled thanks to increased fleet size and rates for transporting spot crude.

UAE, EGYPT

The region’s biggest gainer of the day was Dubai which, as a regional logistics and financial hub, could benefit the most from increased foreign trade and investment in Iran if the sanctions are lifted.
The emirate’s index rose 0.9 percent with most stocks positive. Heavyweights Emaar Properties and Dubai Islamic Bank added 2.1 and 1.5 percent respectively.
Neighbouring Abu Dhabi’s bourse gained 0.6 percent and Qatar edged up 0.4 percent. But oil-sensitive stocks in both markets were weak. Abu Dhabi National Energy Co. tumbled 6.9 percent and petrochemicals giant Industries Qatar lost 0.7 percent.
The more positive news on Greece boosted global appetite for risk so investors from outside the region were net buyers on all major markets in the Middle East, data from local bourses showed.
But their buying failed to support Egypt’s market, which fell 1.4 percent as local investors resumed a sell-off, after a drop in trading volume in the previous session indicated that the market’s rally was faltering.
The Cairo benchmark had risen in the two previous days after sinking to a one-year low on concerns over exchange rates, security and an energy shortage.
The property sector came under particularly heavy pressure on Monday. Palm Hills Development PHDC.CA tumbled 4.8 percent and Medinet Nasr Housing lost 4.5 percent.