Gulf markets fall

Dubai : Major Middle Eastern stock markets fell yesterday after Moody’s cut the debt ratings or outlooks of many countries, while Dubai construction firms dropped steeply after reporting first-quarter earnings. Bahrain index edged down 0.2 per cent to 1,110 points.

The Saudi stock index spent much of the day higher but closed 0.03 per cent lower, with petrochemicals blue chip Saudi Basic Industries dropping 0.3pc.

Miner Ma’aden climbed 3.3pc, however. It is expected to benefit from a drive to develop the mining industry in the kingdom’s economic reform plan.

Saudi International Petrochemical Co (Sipchem) was flat after chief executive Ahmad al-Ohali told the firm would be open to reviving its aborted merger with Sahara Petrochemical or pursuing another target, but only once the kingdom had changed rules governing mergers and acquisitions. Sahara rose 1.3 percent.

Dubai’s index dropped 1.2pc as Arabtec tumbled 4.6pc, after its first-quarter net loss narrowed to 46.4 million dirhams ($12.6m) from 279.8m dirhams a year earlier. 

Abu Dhabi’s index fell 0.3pc as Aldar Properties lost 1.9pc. Qatar edged down 0.2pc but drilling rig provider Gulf International Services jumped 6.5pc.

Egypt’s index sank 2.0pc after Moody’s cut its outlook to negative from stable, a sign that hoped-for improvements in the economy following massive foreign aid and efforts at reform are still proving difficult to achieve.

Commercial International Bank, Egypt’s largest-listed company, slipped 2.2pc to 43.00 Egyptian pounds after reporting a 17pc rise in first-quarter net profit, helped by improved interest margins. In other markets, Kuwait fell 0.4pc to 5,376 points, while Oman’s stock index edged up 0.03pc.