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Reuters
Cement shares lifted Saudi Arabia’s stock index on Wednesday while other big bourses in the region were weak, with real estate shares pulling down Dubai.
The Saudi index rose 0.3 percent as 13 of the 14 cement stocks climbed in unusually heavy trade. Jouf Cement was up 5.4 percent and Tabuk Cement jumped its 10 percent daily limit. The sector reported weak 2017 earnings because of a slumping construction industry, but some investors expect a stronger 2018 as the government boosts spending under its budget plans.
A Saudi securities analyst said Tabuk led the sector up in response to a media report that the government had started awarding contracts for its NEOM project to build a huge business zone in the northwest of the country. Tabuk is located close to the site of NEOM.
The largest Saudi bank, National Commercial Bank, jumped 2.6 percent because of a wave of buying in the final half-hour.
Across the whole market, however, declining stocks outnumbered gainers by 107 to 73. Petrochemical producer Saudi Kayan fell back 1.9 percent; it had surged in recent days after fourth-quarter earnings which, although they featured a net loss due to a planned shutdown of facilities for adjustments and maintenance, were seen by analysts as positive.
The Dubai index fell 1.3 percent as blue chip Emaar Properties sank 1.6 percent; fellow real estate firms Deyaar and DAMAC also slid. Dubai Islamic Bank, which had tumbled 4.6 percent on January 30 after announcing plans for a new share issue, fell a further 2.1 percent.
Egypt’s index tumbled 1.8 percent with the biggest bank, Commercial International Bank, sagging 3.0 percent. But Juhayna Food Industries added 2.4 percent after saying fourth-quarter consolidated net profit jumped 141 percent on year as revenues gained 17 percent.