Saudi stocks fall on poor earnings, oil volatility; Abu Dhabi rises

Oct 26 (Reuters) – Saudi Arabian shares closed lower on Wednesday after a string of disappointing corporate earnings and uncertainty in the energy market weighed on investor sentiment.

Crude oil prices were the main catalyst for Gulf financial markets, generally steady in and out of negative territory, after industry data showed U.S. crude inventories rose more than expected last week, but supply concerns and a weaker dollar provided support.

Rising inventories fueled fears of a global recession that would further cut demand, as was evident in weak Chinese crude oil import data.

benchmark index (<.TASI>) Saudi Arabia fell 1.5%, dragged by a 4% drop in Retal Urban Development Co (<4322.SE>) Although the company reported a higher quarterly profit.

Yanbu Petrochemical Company (<2290.SE>) Shares fell 4.6% as the petrochemical company posted a quarterly loss.

Among other losers, oil giant Saudi Aramco (<2222.SE>) Down 1.8%, Saudi energy index (<.TENI>) It fell 1.8%.

In Qatar, the index (<.QSI>) Falling 1.6%, falling for a third session in a row as most stocks including Islamic bank Masraf Al Rayan are in negative territory ()down 6.7%.

The bank reported nine-month net profit fell more than 20 percent to 1.36 billion Qatari riyals ($373.63 million).

Elsewhere, petrochemical manufacturer Industries Qatar () It fell 2.1% ahead of the earnings report.

MENA BDSwiss chief executive Daniel Takieddine said the Qatari market continued to decline due to uncertainty in the gas market and declining returns in the banking sector.

“Markets are also likely to be affected by a more cautious atmosphere globally.”

Dubai’s main stock index (<.DFMGI>) It closed down 0.9%, hit by a 1.6% drop in blue-chip developer Emaar Properties (<开始读>) Shariah-compliant lender Dubai Islamic Bank down 1.5% ().

Abu Dhabi Index (<.FTFADGI>) It rose 0.3%, snapping a three-session losing streak, helped by a 1.1% rise in International Holdings Group ().

Beyond the Gulf, Egypt’s Blue Chip Index (<.EGX30>) It rose 0.8%, rising for a second straight session.

Egyptian Prime Minister Mustafa Madbouli said on Tuesday that Egypt aims to provide income tax relief of up to 55 percent for certain businesses. read more

October 6 Development and Investment Corporation (SODIC) stock ()The index, which is not part of the index, rose 5.7% after nine months of strong earnings growth.

(1 USD = 3.6400 Qatari Riyals)

Reporting by Ateeq Shariff in Bengaluru; Editing by Shailesh Kuber

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