Saudi stocks slip; Bank Al Jazira drops 4.3 percent

JEDDAH: Most major stock markets in the Middle East rose, including Dubai which continued to climb even as construction firm Arabtec, its most heavily traded stock, was suspended.
Companies in Saudi Arabia were the first to start reporting quarterly earnings and dividends this month.
Saudi Arabia’s main index slipped 0.3 percent on Thursday after a series of negative announcements.
Bank Al Jazira was the main drag on the index, dropping 4.3 percent after its quarterly profit of SR166.7 million ($44.5 million) missed analysts’ average estimate of SR191.0 million.
Saudi Kayan Petrochemical Company also dragged down the benchmark, sliding 2.6 percent after it reported a quarterly loss of SR133.1 million, whereas analysts had forecast a profit.
Retailer Jarir Marketing slipped 0.5 percent after it proposed cutting its cash dividend for the second quarter to SR1.20 per share from SR1.70 a year ago despite a modestly higher profit.
Food producer Savola Group, on the other hand, jumped 4.5 percent following a higher than expected 32.4 percent increase in second-quarter net profit.
Dubai’s market pulled back as much as 1.0 percent in early trade as market players found themselves unable to trade Arabtec shares. But it then recovered quickly and closed up 0.9 percent as attention shifted to other stocks.
The bourse, citing instructions from the UAE’s Securities and Commodities Authority, said it had suspended Arabtec pending clarification of media reports about strategic partners’ stake in the firm.
The suspension appeared to indicate that regulators are now taking a more active approach to volatility in Arabtec shares and disclosure of information about the company, after wild swings in the stock over the past two months destabilized the entire stock market.
“I think the regulator now is very conscious of what’s happening around the name and they want to make sure that the movement of the stock is not based on rumors,” said Ali Adou, portfolio manager at The National Investor in Abu Dhabi. “I think it’s a very good step.”