Saudi bourse retreats on weak oil, registers weekly loss

DUBAI: Saudi Arabia’s stock market ended lower on Thursday and recorded its third weekly loss in four, tracking weaker oil prices, while other major Gulf bourses traded mixed.

Oil prices slid to six-week lows before recovering some ground, as China said it was moving to tap reserves after a Reuters report that the United States was asking large consuming nations to consider a stockpile release to lower prices.

The bid by the US to cool markets, asking China to join a coordinated action for the first time, comes as inflationary pressures - partly driven by surging energy prices - start to produce a political backlash.

Saudi Arabia’s benchmark index dropped 1%, weighed down by a 1.8% fall in Al Rajhi Bank and a 1.7% decline in petrochemical maker Saudi Basic Industries Corp .

In Abu Dhabi, the index edged up 0.1%, helped by a 2.4% rise in Alpha Dhabi Holding after its subsidiary Trojan General Contracting formed a joint venture to construct Guggenheim Abu Dhabi. Separately, the United Arab Emirates signed 23 agreements with local and international companies worth around 22.5 billion dirhams ($6.1 billion) during the first four days of the Dubai Airshow, the Ministry of Defence said on its official Twitter account on Thursday.

Dubai’s main share index rose 0.1%, with blue-chip developer Emaar Properties putting on 0.8%, while Deyaar Development jumped 4.4%, rising for a sixth consecutive session.

On Sunday, Deyaar reported a quarterly net profit of 8.2 million dirhams ($2.23 million), up from 4.5 million dirhams year ago. Dubai Financial Market announced an incentives program to encourage initial public offerings and listings from private sector companies.

The Dubai index registered its sixth weekly gain. In Qatar, the index gave up early gains to close 0.1% lower, hit by a 0.8% fall in Qatar Islamic Bank. Outside the Gulf, Egypt’s blue-chip index declined 1%, dragged down by a 1.9% slide in top lender Commercial International Bank.

SAUDI ARABIA dropped 1% to 11,710

ABU DHABI gained 0.1% to 8,349

DUBAI added 0.1% to 3,265

QATAR eased 0.1% to 11,950

EGYPT down 1% to 11,338

BAHRAIN was up 0.2% to 1,791

OMAN rose 0.3% to 4,064

KUWAIT gained 0.2% to 7,883.