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Most Mideast Stocks Retreat as Traders Eye Earnings
Most Mideast Stocks Retreat as Traders Eye Earnings
28 Oct 2018, 08:34 PM IST 
(Bloomberg) -- Most equity indexes in the Middle East declined as investors focus on third-quarter results.
Volatility in Saudi stocks dropped to the lowest level in two weeks as the uproar over the killing of columnist Jamal Khashoggi in Istanbul dissipate. Saudi Basic Industries Corp. fell even after third-quarter profit met analysts’ estimates.
- MSCI Emerging Markets Index lost 3.3% last week, its fifth weekly decline, while a gauge of emerging-market currencies dropped 0.4%
- EM Review: Emerging-Market Assets Fall Amid Global Stock Selloff
MIDDLE EASTERN MARKETS
- Saudi Arabia’s Tadawul All Share Index declines 0.4%, after climbing 2.5% last week
- Investors are looking at third-quarter earnings statements closely, said Joice Mathew, the head of equity research at United Securities in Muscat, Oman
- “The fear of any major diplomatic action on Saudi has faded off, so focus is largely on the domestic factors”
- Says index could climb to as much as 7,900
- Tadawul closes at 7,802.65
- Expects “strong earnings momentum in banks with double-digit earnings growth supported by widening spreads, but loan growth is not enticing as much.”
- For petrochemical companies: results are “likely to be stable/similar to 1H18 levels, as hike in product prices should get neutralized by the hike in raw material prices”
- Sabic retreats as much as 2.2% before falling 1.9% at close; the company said higher average selling prices and an increase in volumes helped boost 3Q profit
- Sales climbed 13% to 43.7b riyals
- Southern Province Cement slips 0.9% after third-quarter profit missed the lowest analyst estimate
- MORE: Saudis Reject Turkish Demand to Hand Over Khashoggi Suspects
- READ: Investors Vexed by Khashoggi-Fate Fracas Say This Too Shall Pass
- Investors are looking at third-quarter earnings statements closely, said Joice Mathew, the head of equity research at United Securities in Muscat, Oman
- Dubai’s DFM General Index, Qatar’s QE Index, Egypt’s EGX 30 fall between 0.1% and 0.4%
- Abu Dhabi’s ADX General Index rises 0.3% and Oman’s MSM 30 closes little changed
- QuickTake: How Khashoggi Killing May Help Heal Saudi-Qatar Rift
- Israel’s TA-35 Index gains 0.2% as of 3:13 pm in Tel Aviv
- READ: It’s Time to Treat Israel Like Other States, Oman Says
- MORE: Syria Summit Doubles Down on Political Push in Search for Peace
OTHER EMERGING MARKETS:
- Brazil Candidates Wrap Up Divisive Campaign Pledging Respect
- Draghi’s Caution Sparks Polish Bond Binge as Rate Hikes Wait
- IMF Board Approves $56.3 Billion Credit Line for Argentina
- Ruble at Mercy of Sanctions as Russian Defenses Show Cracks
- Indonesia’s Addiction to Cheap Gasoline Fueling Its Deficit Woes
To contact the reporter on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Claudia Maedler, Shaji Mathew
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