Profit-taking dragged stock markets in the Middle East down on Monday, with Egypt lagging after some quarterly earnings failed to inspire. Saudi Arabia's index lost 1.1 percent to 6,969 points, heading back down towards technical support at the mid-February low of 6,942 points. A little under nine-tenths of traded shares declined and trading volume was above the 10-day average.
All 14 listed petrochemical makers closed down with National Industrialisation Company (Tasnee) the biggest loser, dropping 4.8 percent. Banking shares were also weak. All but one dropped with Saudi British Bank losing 4.6 percent. Real estate investment trust Riyad REIT, which had jumped 9.4 percent on Sunday, slumped by its 10 percent daily limit in heavy trade. Dubai's index edged down 0.3 percent in very thin trade as the largest real estate developer, Emaar Properties, fell 0.9 percent.
Its retail unit, Emaar Malls, rose 0.8 percent after its board recommended paying a cash dividend of 0.1 dirham per share for 2016, the same as in 2015. In Abu Dhabi, the index fell 0.6 percent with blue chips Aldar Properties closing 1.6 percent lower and Abu Dhabi Commercial Bank dropping 2.7 percent. The Qatari index closed flat with Qatar Islamic Bank adding 2.5 percent. In Cairo, the index fell 2.0 percent as Global Telecom Holding declined 3.8 percent.
The company reported a fourth-quarter net profit of $7 million, swinging from a net loss of $12 million, but that was attributed mainly to one-off items, lower impairments for equipment and a foreign exchange gain. Analysts at Naeem Brokerage said the results fell short of expectations because of declining margins and intensified competition in Algeria.
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