A general decline swept across all Gulf markets today except Kuwait, which rose slightly in the last few minutes of trading by 0.16%. The rise in Kuwait came despite many leading firms announcing a decline in their H1 profits, including Zain, Kamco and Kuwait Properties.
Muscat was the biggest loser today, with a 3.2% decline, its biggest drop in six months. This despite record profits from Gulfar and Resot. Muscat Bank also announced that H1 profits jumped by 48.7%.
Profit taking pushed the Dubai Financial Market (DFM) down by 0.50% and the Abu Dhabi Securities Exchange (ADX) by 0.01%. In Saudi Arabia, the Tadawul dropped by 0.088%, while Bahrain fell 0.071% and Doha by 0.21%.
Analysts were expecting Gulf markets to show excellent results this week after remarkable H1 results from listed firms. Leading firms such as Dubai Islamic Bank, Arabtec, First Gulf Bank, National Bank of Abu Dhabi, Gulfar and many others have already announced rising profits.
Dubai: Profit taking wave
As expected by many analysts, the DFM witnessed a profit taking wave today following its excellent performance on Wednesday, forcing the market to decline today.
Arabtec, unexpectedly, fell sharply by 3.3% to Dhs19 after jumping at the start of the session to Dhs19.90, following its rise in H1 profits by 141%.
DIB's share rose slightly by 1%, after Dhs1.3bn H1 profits - up 46% compared to last year. Analysts believe that DIB's profits were down to the IPO of its affiliate Deyar.
Gulf Holding's share closed unchanged today, after rising at the beginning of the session, following a 95% rise in H1 profits. Emaar dropped by 0.94% and DFM by 0.84%.
The ADX fell slightly today amid low trading, valued below Dhs500m. And strong results from NBAD, which rose more than 40%, failed to push the index up.
Tadawul: Index fails to stay above 9,000 points
The Saudi market tried hard to stay above 9,000 points, but failed to do so after pressure from all leading sectors, especially petrochemicals, banks and telecoms, which kept fluctuating during the session.
The banking sector saw a general decline, except Saudi Hollandi Bank, which rose by 0.41%, while Sabic dropped by 2.5% despite a positive assessment of its share.
The telecom sector, which pushed the index up yesterday, fell today, with Zain down 2% and Mobily 2.4%, while STC kept its upward trend rising by 0.35% to SR70.
Al Masafi rose by its maximum limit of 10%, while Namaa rose by 4.5% after both companies announced that they will raise their capital.
Kuwait: Sharp decline in H1 profits for leading shares
The Kuwait Stock Exchange rose today, despite a decline in profits for some leading firms.
Zain Telecom fell by 2.5%, after its H1 profits fell by 1% to KD147.9m compared to KD148.9, last year. Kuwait Properties also fell, by 1.1% after the company's H1 profits fell by 46.7% to KD8.1m. Kamco's share also fell by 1.2%, after its H1 profits dropped by 59%.
Biggest decline in Muscat
The Muscat market had one of its worst declines today, down 3.2%, its biggest drop May.
Thirty-two of the 34 traded shares fell. Only Oman Diaries and Dhofar International rose, by 2.7% and 0.25% respectively.
The decline in the Muscat index came amid strong profits from listed firms. Gulfar Engineering dropped almost 10%, despite a 34.7% increase in H1 profits. Muscat Bank fell 2.8%, despite its H1 profits rising by 48.7% to OR57.8m. Omantel, the market's second biggest share, fell by 3.5%.
Analysts believe that the decline in Omani market is unjustified as it comes amid strong H1 profits by listed firms.
Doha declines despite rising profits
The Doha market declined 1.1% today, despite strong H1 results. Trading value remained below QR500m at QR432m on a volume of 10 million shares. This included 4.7 million for Naqilat, Al Rayyan and Al Salam, which rose slightly in today's trading.
Al Salam's share rose by 1.6%, following a 90.3% rise in H1 profits to QR97.8m.
Islamic Securities Market's share made strong rise by 6.6%, after a remarkable 557% rise in H1 profits.
Three shares push Bahraini market down
Bahrain's market fell amid a sharp decline in trading value and volume, with only 1.1m shares traded, valued at BD0.6m.
The three shares which led the decline were Investcorp, down 6.9% following a 50% decline in its H1 profits, Batelco (down 4.8%) and Ithmaar by 2.7%.