Latest News

The Gulf stock market has fallen due to weak corporate earnings

The Gulf stock markets were largely muted on Monday morning due to weak corporate earnings. However, rising expectations of interest rate reductions by the U.S. Federal Reserve eased concerns over the slowing economy.

Data released on Friday indicated that U.S. employment growth was slower than expected in the month of July. This has led to expectations that rates could be cut by the Fed in September.

Fed decisions can have a major impact on the Gulf's monetary policies, since most of the currencies in the region are pegged to U.S. dollars.

Saudi Arabia's benchmark index fell 0.7%, with the majority of its constituents reporting losses. Saudi Aramco Base Oil Company-Luberef fell 3% following an 18% drop in its second-quarter profit.

Saudi Aramco, the oil giant and its subsidiary Saudi Basic Industries (SABIC), both fell 0.5% and 0.4%. SABIC, the Saudi chemicals company, reported a surprise quarter loss on Sunday.

The benchmark Abu Dhabi index dropped 0.2%. This was due to a drop of 2% in RAK Properties, and a decline of 0.7% in Fertiglobe.

Fertiglobe, a nitrogen fertilizer manufacturer, reported a drop of 29% in its half-year net profits and declared a H1 dividend per share of 4.4 fils as opposed to 6.6 fils the year before. The second-quarter profit was higher by 41%.

Dubai's benchmark index fell by 0.2%. Emaar Properties fell 1%, and Dubai Investments fell 1.4%.

The benchmark Qatari index fell 0.1%. Financials were the main culprits, with Qatar National Bank - the largest lender in the region - dropping by 0.4%, and Commercial Bank falling by 0.5%.

(source: Reuters)