UAE- Gulf equities rally fizzles

Date

1/26/2016 11:34:48 PM

(MENAFN- Khaleej Times)

Major Gulf bourses retreated on Monday erasing some of the previous day's gains with investors unconvinced markets can mount a sustainable rebound.

Riyadh's index was near-flat slipping 0.02 per cent to 5610 points as day traders booked quick profits to take its 2016 losses to 18.8 per cent. It had gained 2.7 per cent on Sunday after oil prices rallied late last week but crude's renewed weakness has again sapped Saudi market confidence.

The petrochemical sector dropped 0.2 per cent. Al Rajhi Bank fell 0.8 per cent after surging 5.9 per cent on Sunday. The Islamic lender made a fourth-quarter net profit of 1.95 billion riyals ($519.6 million). Samba Financial Group slid 1.3 per cent.

Saudi Arabia's fourth-quarter earnings season has ended. The combined profits of the kingdom's listed companies shrunk 16.1 per cent from the same period last year according to Riyadh's NCB Capital. The firm said results were also 29 per cent below analysts' average forecasts.

Petrochemical companies were the worst performers while banking and food sectors were the best.

Dubai's index fell 1.9 per cent to 2704 points 82 points away from Thursday's 28-month low.

"On the daily chart Dubai's benchmark traded below both the critical neckline resistance of 2800 points and the important moving averages" said Shiv Prakash senior research analyst at Abu Dhabi's NBAD Securities. "Any near-term bounce will be considered a dead cat bounce." Arabtec fell five per cent erasing some of the previous day's 10 per cent rise. Emaar Properties which surged eight per cent on Sunday fell 2.8 per cent.

Abu Dhabi's index also failed to hold onto gains dropping 0.6 per cent. It also hit a 28-month low on Thursday. Dana Gas the most traded stock fell 2.4 per cent.

Qatar's benchmark gave back early session gains to end 1.5 per cent lower. - Reuters

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