The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
DUBAI / Reuters
Rising oil prices lifted energy company stocks in the Gulf on Thursday, but indices were mixed due to some negative earnings reports, especially in Saudi Arabia. The Riyadh index lost 0.7 percent. Savola Group, the kingdom’s largest food products company, reported a 96 percent drop in first-quarter net profit, sending its shares down 2.4 percent.
The National Industrialization Company (Tasnee), which reported a less than expected first-quarter net profit of 103.3 million riyals ($27.54 million), fell 7.6 percent. Bupa Arabia, which posted a significant decline year on year in first-quarter profit to 36.7 million riyals, dropped 6.3 percent.
United Arab Emirates markets rose due to higher oil prices and positive first-quarter results over the past week. The Dubai index gained 0.7 percent and the Abu Dhabi index was up 0.6 percent. Brent Crude broke through $50 a barrel this week, after a fall in US inventories and a bigger-than-expected cut in Saudi supplies to Asia helped tightened the market.
Shares of state-owned Abu Dhabi National Energy Company (TAQA) rose 12.5 percent after the company swung to profit in the first quarter. Dana Gas, which reported an $11 million first-quarter profit, up from $6 million a year earlier, gained 2.3 percent.
In Dubai, real estate companies including Emaar Malls and Damac Properties edged up while construction company Drake and Scull, the worst performing stock, fell 4.3 percent. The Qatar index was up by 1.2 percent, following a major decline in April.
Thursday marked the last day of earnings reports in Saudi Arabia. In general, results have been in line or above estimates for most sectors, with earnings in the petrochemical and banking sector rebounding modestly compared with a year ago.
Construction related companies, however, including cement and contractors recorded a year on year decline in bottom line. Those sectors are highly dependent on government payments, which have been delayed as a result of lower oil revenue.
The Saudi market has fallen
2.4 percent since April 5, when the first Saudi company reported earnings.