Wednesday, 25 March 2015 17:25
DUBAI: Saudi Arabia’s stock market pulled back broadly in early trade on Wednesday as investors eyed upcoming first-quarter earnings announements, while Egypt’s market also fell.
The main Saudi index dropped 2.6 percent with most stocks in the red. Saudi Arabian Mining Co (Ma’aden) tumbled 8.5 percent and was one of the main drags.
The firm said on Tuesday that one of its facilities, in which Saudi Basic Industries also has a stake, had been forced to shut down an ammonia plant in the east of the kingdom so that unscheduled maintenance could take place on its cooling facility. SABIC fell 1.0 percent.
Expectations of first-quarter earnings were another negative factor for some stocks. Broker and fund manager Osool and Bakheet Investment Co (OBIC) has published its forecasts for a number of companies, predicting sharp declines for the petrochemicals sector and minor decreases for some banks.
Advanced Petrochemical Co, whose net profit OBIC expects to plunge 87 percent, tumbled 6.5 percent on Wednesday. National Commercial Bank, the kingdom’s biggest lender, fell 2.1 percent after OBIC forecast its quarterly profit would slip 1.5 percent.
Instability in Yemen may also be having a small negative impact on sentiment among some investors. Saudi Arabia is moving heavy military equipment including artillery to areas near its border with Yemen, U.S. officials said on Tuesday, indicating a risk that Riyadh might be drawn into the conflict.
Egypt fell broadly and the Cairo index lost 1.1 percent. Along with Saudi Arabia, it has led gains in the Middle East this year.
Copyright Reuters, 2015
