JEDDAH/DUBAI: Saudi Basic Industries Corp. (SABIC), one of the world’s biggest chemicals firms, helped lift the index on Wednesday, after hitting a 15-month intraday high on earnings that beat forecasts.
The Tadawul All-Share Index (TASI) climbed 0.21 percent to 6,382.04, while other Middle East markets were mixed, with investors wary as world stocks dipped.
The Saudi sector losses ranged from 0.20 percent in the Telecom & IT, to a loss of 1.79 percent in the Media & Publishing sector. On the other hand, sector gains, across the other 10 sectors ranged from 0.05 percent in the Cement to a gain of 1.64 percent in the Transport sector. Overall market breadth was positive, with 68 advancers and 48 decliners registering an AD ratio of 1.42, the Jeddah-based Financial Transaction House (FTH) said in its daily market report. SABIC rose 0.56 percent, hitting its highest level intraday since Oct. 21, 2008 after quarterly profit rose 15-fold. “The expectations are that 2010 will be a good year for the company if the global economy is stable and continues to improve,” said Hesham Abo-Jamee, Bakheet Investment Group head of asset management. “This should reflect positively on the stock, which could rise 20-30 percent for the year.”
Disappointing bank earnings will affect Saudi Arabia’s market, said Abo-Jamee, but the high provisions taken by lenders, which caused most to miss analysts’ estimates, will be positive as banks clean up their books. “Most banks will show good profits in the first quarter of 2010, with minimal provisioning,” said Abo-Jamee.
A final-hour rally saw Dubai’s index rise by 0.9 percent to 1,677 points, easing away from Tuesday’s six-week low. Volumes hit a seven-week low and were the second-lowest of the past 12-months.
Abu Dhabi fell for a seventh session in eight as banks struggled. National Bank of Abu Dhabi fell 1.3 percent and Abu Dhabi Islamic Bank lost 1.8 percent.
The benchmark fell 0.1 percent to 2,654 points.
Oman inbdex slipped to a two-week low, falling 0.6 percent to 6,436 points.
— With input from agencies