NCB, Mobily hit Saudi, Emaar weighs on Dubai

Reuters

National Commercial Bank and telecom stocks dragged down Saudi Arabia’s main index while Emaar Properties weighed on Dubai’s stock market for the second day in a row.
The Saudi index fell 1.3 percent to 6,886 points on the back of the banking and insurance sectors, as NCB reported an 8.4 percent rise in third-quarter net profit, or around 5 percent below analysts’ estimates. It fell 4.8 percent.
Bank Aljazira fell 1.0 percent, although it reported a 41 percent rise in third-quarter net profit to 228 million riyals. Alawwal Bank also sank 3.4 percent. Alinma Bank was the most heavily traded stock and lost 2.1 percent.
Most Saudi insurers also fell: Metlife AIG ANB Cooperative Insurance fell 1.7 percent and Malath Insurance lost 3.7 percent. Saudi Arabia’s Etihad Etisalat (Mobily) sank 7.3 percent after it reported a third-quarter loss on Monday, blaming a rule introduced last year requiring fingerprints be registered with SIM cards for shrinking the telecom market. “Retail investors represent almost 90 percent of the market, so they tend to react immediately to the news,” Al Jubran added.
The Dubai index lost 0.7 percent as Emaar fell another 2.3 percent, after losing 2.1 percent, after it said it expects to sell 20 percent of its local property development unit Emaar Development LLC next month in an initial public offering.
Previously, Emaar had said it would offer up to 30 percent of the business, distributing funds raised as dividends to shareholders in the parent company. It did not say why the sale was expected to be only 20 percent.
The losses in Dubai were mitigated by Drake & Scull International, which gained 2.5 percent and was the most heavily traded stock. In Egypt, the index surged 1.2 percent as Juhayna Food Industries gained 4.2 percent after it reported a 12 percent rise in third-quarter consolidated net profit attributable to shareholders.