JEDDAH – Shares in Saudi Arabia, the Gulf Cooperation Council's biggest bourse, slipped 0.31 percent Sunday to close at 6,661.99, the lowest close since July 23, after local lenders including Saudi British Bank (SABB) missed earnings estimates. The measure tumbled 1.7 percent Saturday. The banking index ended 1.92 percent down in its first session since major banks posted results. Basil Al-Ghalayini, CEO of BMG Financial Group, said: “This is quite unexpected. The market has been affected primarily by the petrochemical sector as most companies have witnessed noticeable decline in global sales led by Yansab. The latter had recorded almost 47 percent decline during the third Quarter and 28 percent decline year to date. These consecutive declines have been driven by flattering global sales coupled with the temporary shutdown of the Olifins Cracker Unit.” Commenting on the Tadawul's steep fall, Jarmo T. Kotilaine, a regional economist, said: “This is primarily reflective of the renewed sense of malaise in the global markets. Last week was marked by bearish sentiment globally, not least because the US earnings data has failed to impress. The IMF/World Bank meetings have further highlighted the challenges while offering little concrete by way of solutions.” He said the mood in many countries, especially in the euro zone is turning against austerity as reflected in the recurrent large-scale protests. “In general, there is worldwide anxiety that the respite offered by renewed quantitative easing is doing little to take us closer to a real recovery,” Kotilaine said. Oil fell Oct. 12 after the International Energy Agency cut its forecast for global demand, saying slower economic growth may limit fuel consumption. Crude for November delivery slipped 0.2 percent to $91.86 a barrel on the New York Mercantile Exchange on Oct. 12. The United Arab Emirates, Saudi Arabia and four other members in the Gulf Cooperation Council supply about a fifth of the world's oil. The IEA cut the outlooks for 2012 and 2013 by 100,000 barrels a day each from a month earlier. Saudi Arabia's biggest listed bank by stock market capitalization, Al-Rajhi Group, reported net earnings of SR1.87 billion ($498 million) in the three months ended Sept. 30, compared with SR1.94 billion in the same period last year. It did not give details on the higher costs. Total operating profit for the quarter rose 14 percent to SR3.64 billion, while total funding jumped 23 percent year on year to SR166 billion. Elsewhere, Abu Dhabi's shares dropped the most in almost a month after earnings in Saudi Arabia (SABIC) disappointed and oil declined. In Qatar, shares of Industries Qatar (IQCD) rose 1.1 percent to SR144.1, the highest close since May 8, after the second- biggest petrochemicals maker in the Middle East posted a 27 percent increase in third-quarter profit, beating analysts' estimates. Dubai's DFM General Index declined 0.7 percent, Oman's MSM30 Index lost 0.1 percent. Bahrain's All Share Index (climbed 0.4 percent and Kuwait's Stock Exchange Price Index (rose 0.2 percent. In Egypt, the EGX30 Index gained 0.2 percent, led by Egyptian Kuwaiti Holding Co. and Citadel Capital SAE. Dana Gas (DANA), the fuel producer with $1 billion in debt maturing this month, lost 2.1 percent. Arkan Building Materials Co. fell for the first time in four days. The ADX General Index (ADSMI) slipped 0.5 percent. – SG
