The prospect of disappointing fourth-quarter earnings weighed on investor sentiment in the UAE and Saudi Arabia on Monday.
Lower-than-expected profit at Riyad Bank sparked sharp losses among Saudi equities. Shares in Riyad, the country’s fourth largest lender by assets, closed 2.7 per cent lower at 10.8 riyals, with Jabal Omar Development and Al Rajhi Bank among a host of big names experiencing sell-offs.
“Fourth-quarter results are expected to be far from stellar, due to higher non-performing loan ratios for banks, rising inventories for cement firms and the prospect of decreasing infrastructure spending and weak consumer confidence,” said Nayal Khan, the Riy-adh-based head of institutional sales trading at Saudi Fransi Capital, in an email. “Couple these with near-term political concerns in the US and in Europe, local investors are preferring to book profits for now and revisit once markets have adjusted to the new political and economic dynamics.”
Saudi Arabia’s Tadawul closed down 1.55 per cent at 6,823.63, its lowest close since November.
Dubai shares closed down for the fourth consecutive trading day, ending a thin trading session 0.26 per cent lower at 3,669.
Shares in Emirates NBD fell 2.2 per cent to Dh8.60, despite the bank’s fourth-quarter earnings coming in broadly ahead of analyst forecasts. Du and Emaar Malls were among the other big-name sell-offs in Dubai, closing off 3.4 per cent and 3 per cent respectively.
Shares in Abu Dhabi finished a quiet day 0.5 per cent lower at 4,653.48. NBAD and Etisalat finished off 2.8 per cent and 0.3 per cent respectively, cancelling out gains by ADCB and Agthia.
jeverington@thenational.ae
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