Gulf stocks slip but Saudi property shares extend gains

Gulf stocks inched down in response to weak oil prices and international markets on Monday, but shares of Saudi Arabian property developers gained further on hopes they would benefit from the country’s economic reforms.

Dar Al Arkan Real Estate Development rose 2.3 percent to 6.60 riyals. The shares have been rising since the company announced last week it was in talks with the government to build homes under the kingdom’s economic reform programme.

The stock is now trading well above the mean price target, 5.94 riyals, of eight analysts polled by Reuters.

Emaar Economic City, the lead developer of King Abdullah Economic City, added 0.3 percent. It has also said it plans to help the housing ministry meet its target of building 1.5 million homes over the next seven or eight years.

But profit-taking in other shares pushed the main Saudi stock index down 0.1 percent after an hour of trade. Saudi Basic Industries, the largest listed stock, fell 0.3 percent.

Dubai’s index was down 0.4 percent, extending the previous session’s 1.0 percent decline. Dubai Park and Resorts and Dubai Investments each fell more than 1.0 percent.

In Abu Dhabi, a 1.8 percent decline in Dana Gas was the main drag on the index, which slipped 0.1 percent. Trading volume was lethargic with less than one-fifth of listed companies active.

Qatar’s main index edged down 0.1 percent in choppy trade. Oil drilling rig provider Gulf International Services dropped 1.5 percent.

But Qatar Electricity and Water added 1.4 percent. According to Reuters data, the forward 12-month dividend yield for the utility is 4.0 percent – an attractive yield as slowing economic growth in the Gulf makes growth stocks less enticing.

Source: Reuters