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Reuters
Saudi Arabian telecoms company Mobily slumped after worse than expected results on Monday, but the market was buoyed by stronger quarterly earnings from the insurance sector, while performance across the rest of the region was mixed. Shares of Etihad Etisalat(Mobily) tumbled 6 percent to 21.05 riyals after it swung to a net loss of 163 million riyals ($43.47 million) in the first quarter, compared with a 20 million riyal net profit a year earlier. Average analyst expectations were a net loss of 69.39 million riyals.
Mobily attributed its third consecutive quarterly loss to a drop in revenue and higher interest and financial charges. “The ongoing losses combined with the strong decline in sales are the key concerns,” said NCB Capital, which has a “neutral” recommendation on the stock with a price target of 25 riyals. The Riyadh index, however, rose 0.1 percent as most insurance stocks were lifted by the exceptional financial performance of two companies.
In Abu Dhabi, the index added 0.2 percent with support from First Abu Dhabi Bank and gas explorer Abu Dhabi National Energy, up 1.4 percent and 3.3 percent respectively. Investors have been building positions in TAQA on indications that the financially troubled company had turned a corner, with a state run utility increasing its stake, and as the company plans to sell some of its international assets. Egypt’s index recovered a little of the previous session’s 2.8 percent loss, as foreign traders helped it to a 0.3 percent gain, exchange data showed. Global Telecom Holding, one of the stocks favoured by international funds, was the top performer with a 3.4 percent gain.