Saudi- Petchem stocks fall 0.2
(MENAFN- Arab News) DUBAI: Major Gulf bourses retreated on Monday erasing some of the previous day's gains with investors unconvinced markets can mount a sustainable rebound.
Riyadh's Tadawul All-Share Index was near-flat slipping 0.02 percent to 5610 points as day traders booked quick profits to take its 2016 losses to 18.8 percent. It had gained 2.7 percent on Sunday after oil prices rallied late last week but crude's renewed weakness has again sapped Saudi market confidence.
The petrochemical sector the main influence on market direction of late dropped 0.2 percent.
Al-Rajhi Bank fell 0.8 percent after surging 5.9 percent on Sunday.
The Islamic lender which was one of the last banks to report earnings made a fourth-quarter net profit of SR1.95 billion ($519.6 million) that forecasts.
Samba Financial Group another lender to post better-than-expected results slid 1.3 percent.
Saudi Arabia's fourth-quarter earnings season has ended. The combined profits of the Kingdom's listed companies shrunk 16.1 percent from the same period last year according to Riyadh's NCB Capital. The firm said results were also 29 percent below analysts' average forecasts.
Petrochemical companies were the worst performers while banking and food sectors were the best.
Many stocks in the Gulf are considered cheap by traders and fund managers even after Sunday's rally. But investors have become skittish gripped by uncertainty over whether markets have truly turned a corner and so they could not retain Monday's initial gains.
Dubai's index fell 1.9 percent to 2704 points 82 points away from Thursday's 28-month low.
"On the daily chart Dubai's benchmark traded below both the critical neckline resistance of 2800 points and the important moving averages" said Shiv Prakash senior research analyst at Abu Dhabi's NBAD Securities. "Any near-term bounce will be considered a dead cat bounce."
Arabtec a stock favoured for speculative trade fell 5.0 percent erasing some of previous day's 10.0 percent rise. Emaar Properties which surged 8.0 percent on Sunday fell 2.8 percent.
Abu Dhabi's index .ADI also failed to hold onto gains dropping 0.6 percent. It also hit a 28-month low on Thursday.
Dana Gas the most traded stock fell 2.4 percent.
Qatar's benchmark gave back early-session gains to end 1.5 percent lower. It is down 15.2 percent this year.
Egypt's bourse was closed for a holiday.
Riyadh's Tadawul All-Share Index was near-flat slipping 0.02 percent to 5610 points as day traders booked quick profits to take its 2016 losses to 18.8 percent. It had gained 2.7 percent on Sunday after oil prices rallied late last week but crude's renewed weakness has again sapped Saudi market confidence.
The petrochemical sector the main influence on market direction of late dropped 0.2 percent.
Al-Rajhi Bank fell 0.8 percent after surging 5.9 percent on Sunday.
The Islamic lender which was one of the last banks to report earnings made a fourth-quarter net profit of SR1.95 billion ($519.6 million) that forecasts.
Samba Financial Group another lender to post better-than-expected results slid 1.3 percent.
Saudi Arabia's fourth-quarter earnings season has ended. The combined profits of the Kingdom's listed companies shrunk 16.1 percent from the same period last year according to Riyadh's NCB Capital. The firm said results were also 29 percent below analysts' average forecasts.
Petrochemical companies were the worst performers while banking and food sectors were the best.
Many stocks in the Gulf are considered cheap by traders and fund managers even after Sunday's rally. But investors have become skittish gripped by uncertainty over whether markets have truly turned a corner and so they could not retain Monday's initial gains.
Dubai's index fell 1.9 percent to 2704 points 82 points away from Thursday's 28-month low.
"On the daily chart Dubai's benchmark traded below both the critical neckline resistance of 2800 points and the important moving averages" said Shiv Prakash senior research analyst at Abu Dhabi's NBAD Securities. "Any near-term bounce will be considered a dead cat bounce."
Arabtec a stock favoured for speculative trade fell 5.0 percent erasing some of previous day's 10.0 percent rise. Emaar Properties which surged 8.0 percent on Sunday fell 2.8 percent.
Abu Dhabi's index .ADI also failed to hold onto gains dropping 0.6 percent. It also hit a 28-month low on Thursday.
Dana Gas the most traded stock fell 2.4 percent.
Qatar's benchmark gave back early-session gains to end 1.5 percent lower. It is down 15.2 percent this year.
Egypt's bourse was closed for a holiday.
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