Saudi Arabia's stock market declined yesterday, pulled by petrochemical shares, after Advance Petrochemical¿s quarterly profit underperformed analysts¿ expectations.
Saudi bourse heads down
Saudi Arabia's stock market declined yesterday, pulled by petrochemical shares, after Advance Petrochemical's quarterly profit underperformed analysts' expectations.
The company, based in Jubail, reported a 2 per cent increase in net profit for the fourth quarter to 91 million riyals, when compared with the same period a year earlier.
Bakheet Investment Group, based in Riyadh, had expected the petrochemical producer to post a profit of 121m riyals.
Advanced Petrochemical's stock slumped 2.1 per cent to 36.50 riyals. Other petrochemical stocks also fell. Saudi Kayan Petrochemical declined 0.8 per cent to 17.10 riyals. Advanced Polypropylene declined 1.3 per cent to 28.40 riyals. The country's benchmark Tadawul All-Share Index closed 0.06 per cent lower at 6,409.75.
"Markets are trading down on negative expectations, with the view that the fourth quarter will not be as strong as the previous quarter," said Joe Kawkabani, the chief investment officer for equities at Franklin Templeton.
Stock markets in the UAE were mixed. Etisalat, which holds the largest weighting on the capital's index, rose 0.3 per cent to Dh9.30. The Abu Dhabi Securities Exchange General Index closed 0.3 per cent higher at 2,416.61.
Banking stocks weighed on Dubai's index. Shuaa Capital, the country's largest investment bank, fell 2.9 per cent to 50 fils. The Dubai Financial Market General Index inched down 0.2 per cent 1,346.60.
Elsewhere in the region: Kuwait's measure fell 0.4 per cent to 5,754.20; Bahrain's inched up 0.1 per cent to 1,136.08; and Oman's slipped 0.1 per cent to 5,713.68.