Second quarter income up 288 per cent year on year
United Electronics leads Saudi share gains
Shares of Saudi Arabia's United Electronics surged yesterday after reporting a quadrupling in its second quarter net income and its first dividend distribution since 2015.
Saudi stocks ended the day up 1 per cent at 7,236.94, with large banking stocks also gaining.
United Electronics (Extra) shares surged by their 10 per cent daily limit in the first 10 minutes of trade after reporting a second quarter net income of 43.4 million riyals (Dh42.4m ), up 287.5 percent from the prior year period.
In a separate statement, the board approved a cash dividend of 0.75 riyal per share for first half of 2017, the company's first dividend distribution since 2015.
The positive mood spilled into other consumer related shares with electronics and bookstore operator Jarir adding 2.9 per cent.
Analysts have been anticipating the retail sector to show signs of improvement in the second quarter from the previous year period because of the government's decision to reinstate civil servants' allowances and because of the Muslim month of Ramadan, which typically sees a rise in sales.
In the UAE, the Dubai Financial Market General Index ended the day 0.5 per cent higher at 3,417.94, its second day consecutive day of gains.
Damac Properties and Emaar Malls led gains, rising 3.6 per cent and 2.1 per cent.
Gulf Navigation remained unchanged at Dh1.41 in early trade, before being suspended ahead of announcing the appointment of First Abu Dhabi Bank (FAB) to manage a US$250m sukuk issue, scheduled for mid-September.
The Abu Dhabi Securities Exchange General Index fell 0.3 per cent to 4,397.96, on the bourse’s quietest trading day for six weeks, with banking stocks leading a minor sell-off.
Shares in Abu Dhabi Commercial Bank were hardest hit, falling 2.4 per cent to finish at Dh6.96. FAB and UNB also finished lower.
Etisalat was the pick of just three gainers, closing up 0.6 per cent ahead of announcing the termination of its management agreement with the holding company of its Nigerian subsidiary.
Qatar Exchange led gains across the region, rising 1 per cent thanks to gains by QNB and Qatar Insurance Company.