Several disappointing results for the third quarter from large companies in Saudi Arabia dragged on the stock index in the Kingdom in Tuesday morning trading, while other markets in the Gulf move higher in modest trading.
The index in Riyadh dropped by 0.8% in just 70 minutes as Saudi Arabian Mining was down 2.7% after posting a rise of 4.6% in net profit for the third quarter to more than 83.5 million riyals equal to $22.3 million. However, that missed expectations of analysts for 122.7 million riyals.
Tasnee or National Industrialization Co moved to a 122.3 million riyals net profit from a 296.5 million riyals loss for the same period one year ago. However, analysts said that result was over 18% less than expectations and the stock plunged 5.5%.
In addition, Saudi Fertilizer was down 5.3% after posting a decline of 68% in net profit for the quarter to 181.3 million riyals, which missed expectations of 249.1 million riyals by analysts.
Shares of bank stocks were mixed in trading as Samba Financial gained 2.1% after posting a drop of 2.1% in net profit for the quarter, which was in line with forecasts.
Al Rajhi Bank increased 1% after posting a rise of 16.6% in profit that met forecasts. It was Saudi Arabia’s first big bank to post higher profits for the just ended quarter.
On the other hand, Saudi Hollandi Bank posted a drop of 46.7% in profit, missing expectations by more than 244 million riyals. Shares fell at the bank by 4.5%.
Zain Saudi was the first operator of telecommunications to post earnings for the third quarter. It dropped by 3.6% after posting a loss for the quarter of 267 million riyals. That was however in line with analysts’ expectations, but revenue for the quarter was off by 7%.
Dubai’s index was up 0.5% in early modest trading, with attention there focused on shares of small and midsize companies. Union Properties and builder Arabtec were each higher by 1.5%.
Union National Bank in Abu Dhabi the only big bank to have posted earnings for the third quarter thus far in the emirate was flat. The bank posted a drop of 15% in net profit to just over 410 million dirhams equal to $111.5 million. Forecasts by analysts were for a profit of 456.6 million dirhams.