Gulf markets mostly mixed, Saudi extends losses

Gulf stocks were mostly mixed on Thursday while Saudi stocks extended losses after a 3.0 per cent plunge a day earlier, as investors were rattled by turbulence in emerging markets.

The Saudi index ended 0.4 per cent lower with Saudi Basic Industries dropping 2.0 per cent and refiner Petro Rabigh falling 3.8 per cent.

The index is still up 6.0 per cent so far this year but has lost about 7.6 per cent in this quarter. Some brokers said the market was ripe for a correction after heavy selling this week, reports Reuters.

On Wednesday, Saudi Arabia’s stock index dropped 3.9 per cent in late trade, falling below its 200-day average for the first time this year, before closing 3.1 per cent lower.

Abu Dhabi index was down 0.2 per cent, hurt by weakness in energy and financial stocks.

Abu Dhabi National Energy Co was down by 2.6 per cent. Union National Bank, which saw big gains this week on news that it is in merger talks with Abu Dhabi Commercial Bank, was down 4.

First Abu Dhabi Bank provided some support with gains of 0.4 per cent.

Dubai index ended 0.3 per cent higher, lifted by an almost 5.0 per cent gain in Union Properties and a 1.9 per cent rise in Emaar Development.

Insurance firm Salama surged 10 per cent after direct deals or block trades were executed on the stock on 370.7 million worth of shares at 0.42 dirhams. Salama traded at 0.54 UAE dirham.

Bank Muscat, Oman’s biggest lender, ended 1.6 per cent higher after securities firm SICO raised its target price to 0.46 rials ($1.19) and recommended a “buy” rating on the stock.

The stock closed at 0.39 rials. The benchmark Muscat index closed flat.