SABIC weighs on Saudi stock market, banks help lift Dubai shares

Saudi Arabia’s stock market opened lower on Sunday, with Saudi Basic Industries Co (SABIC) ,the world’s fourth-biggest petrochemicals firm, weighing on the index after reporting its lowest quarterly profit since late 2009.

Saudi Arabia’s benchmark index slipped 0.1% with SABIC and Saudi Electric falling 1.8% and 2.6% respectively.

SABIC reported second-quarter net profit slid 68% to 2.12 billion riyals ($565 million), citing lower average selling prices and a decrease in the share of contributions from associates and joint ventures.

EFG Hermes had projected a net profit of 2.67 billion riyals.

Last week, SABIC halted negotiations with Clariant to form a new high performance materials company from the combined assets of the two companies.

Financial shares were also weaker with Riyad Bank, Samba Financial Group and Banque Saudi Fransi down 0.8%, 0.9% and 0.7% respectively.

However, Al Rajhi Bank rose 0.6%.

In Abu Dhabi, the index was down 0.6%, weighed down by First Abu Dhabi Bank, the United Arab Emirates’ largest lender, and telecom Etisalat, which fell 1.0% and 0.6% respectively.

Dana Gas dropped 1.1% after Reuters reported the gas producer has hired advisers to sell its assets in Egypt.

Dubai’s index rose 0.1%, helped by 0.4% gains in both Emirates NBD, the emirate’s biggest lender, and Dubai Islamic Bank.

Source: Reuters