Qatari market plunge as shares go ex-dividend

Dubai : Major Middle Eastern stock markets fell yesterday in response to weak global equity and oil prices, with Qatar particularly hard hit by several shares going ex-dividend and a brokerage’s decision not to pay an annual dividend.

The Qatari index plunged 3.1 per cent - its biggest drop since other Arab states imposed sanctions on Qatar last June - in its heaviest trade for a month.

Barwa Real Estate sank 8.7pc, Islamic bank Masraf Al Rayan lost 6.8pc and Al Khaliji Bank slipped 6.7pc as all three stocks went ex-dividend.

Dlala Brokerage tumbled 7.2pc, despite reporting its annual net profit had more than quadrupled, after its board recommended not distributing a dividend.

But Vodafone Qatar, which had jumped by its 10pc daily limit on Tuesday in response to positive earnings and licensing news, surged a further 7.5pc and was the most heavily traded stock by a large margin.

The Saudi index fell 0.6pc with the banking sector declining for a fourth straight day; all 12 banking stocks dropped, partly because of concern about the government’s decision to hand them retroactive Islamic tax liabilities. Al Rajhi Bank slipped 0.9pc.

But National Industrialisation (Tasnee), which had jumped 9.9pc on Tuesday after reporting annual net profit soared about seven-fold, added a further 1.2pc in its heaviest trade since mid-2016.

Insurer Malath surged 6.3pc after saying it had signed insurance agreements with Abdullatif Alissa Group Holding whose annual premiums would exceed 10pc of Malath’s 2017 sales.

Dubai’s index fell 1.3pc as real estate stocks, hit hard in recent months by slumping property prices, dropped again. Blue chip Emaar Properties slipped 2.4pc and DAMAC lost 5.7pc to its lowest level since June 2017.