x Abu Dhabi, UAEMonday 24 July 2017

BankMuscat shares slide as rights issue starts

Markets Wrap: BankMuscat stocks fell for a second straight day as the lender began a rights issue worth 96.7 million Omani rials.

BankMuscat slid 1.1 per cent to 544 baizas in trading yesterday. Jeff Topping/The National
BankMuscat slid 1.1 per cent to 544 baizas in trading yesterday. Jeff Topping/The National

BankMuscat stocks fell for a second straight day as the lender began a rights issue worth 96.7 million Omani rials.

Oman's biggest bank slid 1.1 per cent to 544 baizas in trading yesterday. The share sale ends on July 23.

The bank was among the biggest movers on the wider Muscat Securities Market Index, dragging the benchmark 0.4 per cent lower to 5,534.31.

In Saudi Arabia, stocks slumped yesterday as investors feared a dismal crop of earnings for the second quarter.

The Tadawul All-Share Index fell 1.4 per cent to 6,755.07, with firms including Saudi Basic Industries Corporation (Sabic), Dar Al Arkan and Saudi Telecom Company leading the declines.

The UAE again experienced lacklustre trading and thin volumes, with little news to drive trading.

The Dubai Financial Market (DFM) General Index fell 0.4 per cent to 1,491.95. Emaar Properties, du and Arabtec fell most on the DFM.

The Abu Dhabi Securities Exchange General Index inched 0.1 per cent upwards to 2,478.67.

Banking stocks mounted a tentative rally in the capital as earnings-reporting season drew closer, backed by more substantial gains at Waha Capital and RAK Properties. Most stocks remained unchanged on both indexes.

The slump in volumes was likely to continue until earnings news started to trickle through to UAE markets next week, said Ibrahim Masood, a senior investment officer at the commercial bank Mashreq.

"Volumes have been muted and are trending down, without big price moves in either direction," he told Reuters. "This will probably continue until we start to get some chatter on what earnings might be."

Elsewhere in the Gulf, all other markets fell.

Oil prices rallied to just below US$100, with Brent crude futures rising 21 cents to $99.36 per barrel.

ghunter@thenational.ae

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