Gulf mixed, Egypt extends losses

Dubai

Gulf stock markets were mixed yesterday after oil prices diverged while it remained unclear whether the truce in Yemen would be extended. Egypt’s market extended losses on speculation that it might eventually lose emerging market status.The Yemen conflict is not a big factor for the markets but investors in the Middle East and especially in Saudi Arabia, which leads the coalition against Yemen’s Houthi rebels, have reacted negatively to it. So a resumption of full-scale bombing could weigh on stocks, at least temporarily.The main Saudi index climbed 0.9 per cent to 9,815 points as most stocks rose. Last week it confirmed technical support on its 200-day average, now at 9,566 points, and it faces chart resistance at its April peak of 9,897 points.Al Rajhi Bank, Saudi Arabia’s second largest listed bank by assets, rose 1.1pc to a six-month closing high of 67.25 riyals. The lender, which has reported seven straight quarterly profit drops, started its leg up last week after announcing that Steve Bertamini, former head of consumer banking at Standard Chartered, would become its new chief executive.Al Tayyar Travel Group, which was the only addition to MSCI’s new Saudi Arabian index last week, rose 1.2pc.PetroRabigh added 1.8pc after restarting a vacuum distillation unit following unscheduled maintenance at its 400,000 barrel per day oil refinery.Dubai’s stock index slipped 0.1pc as construction firms Arabtec and Drake and Scull International, which both reported worse-than-expected first-quarter earnings last week, continued to slide. They fell 1.2 and 1.1pc respectively.Abu Dhabi’s bourse fell 1.0pc, while Qatar’s index climbed 0.2pct and Ezdan Holding, up 6.6pc, was the main support. Kuwait’s benchmark inched up 0.1pc. Oman’s market was closed for the Al Israa wal Miraj Muslim holiday.Egypt’s market fell 0.5pc percent to a fresh five-month low of 8,261 points, approaching strong technical support at 8,125 points, its December low.In Bahrain, the index fell 0.4pc to 1,386 points.