Saudi stock index slips 0.2

(MENAFN- Arab News) JEDDAH: Gulf stock markets were mixed as strong oil prices supported investor sentiment but Saudi Arabia and Dubai pulled back slightly from 2015 highs hit in the previous session. Egypt remained depressed by tax and foreign currency concerns.
The main Saudi stock index slipped 0.2 percent to 9711 points and Saudi Telecom was the main drag dropping 2.1 percent as its shares stopped carrying a quarterly dividend.
The Saudi index continues to struggle with major technical resistance in the 9572-9745 point area where the 200-day average roughly coincides with the March peak.
Monday saw profit-taking in several stocks that had outperformed recently. Oil shipper Bahri for instance dropped 2.0 percent after jumping 6.8 percent in the two previous sessions.
But petrochemicals giant Saudi Basic Industries which was the most traded stock added 1.2 percent and most other stocks in the petrochemical sector also rose.
Dubai's index edged down 0.5 percent and bourse operator Dubai Financial Market (DFM) was one of the main drags dropping 2.8 percent.
DFM the only listed stock exchange in the Gulf reported a 69 percent drop in first-quarter net profit as trading volumes on the bourse fell sharply. The firm made AED67.7 million ($18.4 million) in the quarter while HSBC had forecast DFM would earn AED78.0 million.
Bahraini investment firm Gulf Finance House dominated Dubai trading volumes again but pulled back 1.7 percent after surging its daily 15 percent limit on Sunday.
Emaar Malls jumped 2.0 percent after Dubai brokerage Arqaam Capital said in a report that it expected index compiler MSCI to add the stock to its emerging market index in the upcoming semi-annual index review. MSCI will announce the changes on May 12 and implement them from June 1.
Abu Dhabi's market added 0.2 percent thanks to Union National Bank which surged 4.4 percent after the same Arqaam report identified it as another likely inclusion.
Qatar's index .QSI rose 1.3 percent in a broad rally. Barwa Real Estate was one of the main supports and jumped 3.0 percent after saying it would publish first-quarter results on Wednesday.
Two other firms in the sector Ezdan Holding ERES.QA and United Development rose 0.6 and 3.4 percent respectively. Ezdan posted a 13.4 percent increase in first-quarter profit on Sunday while United Development said its profit had risen 8.5 percent.
Egypt's index .EGX30 declined broadly falling 1.6 percent to 8494 points and approaching its 2015 low of 8450 points.
Osama Mourad chairman of Cairo-based Acumen Securities said the market's persistent weakness was mainly due to regulations issued this month which introduced taxes on capital gains and dividends. The new rules have been criticized by the head of the Egyptian stock exchange among others; he said they were too complex.
'The government is not realizing the importance of capital markets' Mourad said adding that foreign currency shortages were another concern.
'Expectations were raised regarding the arrival of $6 billion in deposits (from Gulf nations). However the central bank has not announced what it plans to do with them and companies are suffering from the shortage of foreign currency.'