Saudi bourse dips in profit-taking

Saudi stocks took a dip yesterday as investors claimed profits after a two-day surge driven by strong earnings. "The strong second-quarter results from the banks and consumer sector had managed to move the Tadawul up very aggressively in the last two days," said Alfred Fayek, the managing director at EFG-Hermes in Dubai. "It was expected that a correction would happen. We expect the Tadawul to continue to perform well."

The Saudi Tadawul All-Share Index dropped 0.3 per cent to 6,216.70. Late in the day the Saudi Shura Council, or consultative assembly, announced it was delaying a vote on a long-awaited mortgage law until after Ramadan. "This will probably have an effect on banking stocks tommorrow," Mr Fayek said. The Abu Dhabi Securities Exchange General Index remained largely unchanged at 2,527.33. Abu Dhabi Ship Building jumped 9.5 per cent to Dh3.45 on low volumes. Dana Gas and RAK Properties remained unchanged at 71 fils and 37 fils respectively.

The Dubai Financial Market General Index lost 0.2 per cent to 1,502.81. Emaar Properties dropped 0.6 per cent to Dh3.25, Deyaar Development dropped 0.6 per cent to 32 fils and Arabtec Holding dropped 1.1 per cent to Dh1.71. Elsewhere in the region, Kuwait's measure added 1 per cent to 6,496.50. Qatar's index moved up 0.3 per cent to 7,015.30 and Muscat's bourse lost 0.5 per cent to 6,219.66. Bahrain's index added 1.5 per cent to 1,389.28.

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