Gulf stocks narrowly mixed in quiet trade; Saudi banks firm

Gulf stock markets were narrowly mixed in quiet, early trade on Monday although Saudi Arabian banks surged after a couple of them announced second-quarter earnings.

The Saudi stock index edged up 0.2 percent in the first half-hour as Riyad Bank gained 0.9 percent. It posted a 1.6 percent year-on-year rise in second-quarter net profit to 1.15 billion riyals ($306.6 million); analysts polled by Reuters had on average forecast 1.03 billion riyals.

Samba Financial Group, which reported a 1.4 percent drop in quarterly profit that was in line with forecasts, climbed 1.7 percent.

The biggest Saudi lender, National Commercial Bank , rebounded 1.2 percent after falling 1.5 percent on Sunday, when it reported that its quarterly profit came in at 2.44 billion riyals, at the low end of estimates.

Much activity, however, focused on second- or third-tier stocks such as Amana Insurance, which surged 6.2 percent in unusually heavy volume.

That pattern was seen elsewhere in the Gulf, with small-capital insurance shares drawing an unusually large share of activity. Dubai’s index added 0.2 percent; the most heavily traded stock was Islamic Arab Insurance, up 3.7 percent.

Similarly, Abu Dhabi’s index edged down 0.2 percent as the most active stock was Methaq Takaful Insurance, which jumped its 15 percent daily limit.

In Kuwait, National Bank of Kuwait gained 1.7 percent despite reporting a below-forecast 7.2 percent rise in profit to 71.68 million dinars ($237.2 million); analysts had predicted 79.04 million dinars on average. Kuwait’s stock index drifted 0.3 percent lower.

Source: Reuters