JEDDAH: Most major stock markets in the Middle East rose, including Dubai which continued to climb even as construction firm Arabtec, its most heavily traded stock, was suspended.
Companies in Saudi Arabia were the first to start reporting quarterly earnings and dividends this month.
Saudi Arabia’s main index slipped 0.3 percent on Thursday after a series of negative announcements.
Bank Al Jazira was the main drag on the index, dropping 4.3 percent after its quarterly profit of SR166.7 million ($44.5 million) missed analysts’ average estimate of SR191.0 million.
Saudi Kayan Petrochemical Company also dragged down the benchmark, sliding 2.6 percent after it reported a quarterly loss of SR133.1 million, whereas analysts had forecast a profit.
Retailer Jarir Marketing slipped 0.5 percent after it proposed cutting its cash dividend for the second quarter to SR1.20 per share from SR1.70 a year ago despite a modestly higher profit.
Food producer Savola Group, on the other hand, jumped 4.5 percent following a higher than expected 32.4 percent increase in second-quarter net profit.
Dubai’s market pulled back as much as 1.0 percent in early trade as market players found themselves unable to trade Arabtec shares. But it then recovered quickly and closed up 0.9 percent as attention shifted to other stocks.
The bourse, citing instructions from the UAE’s Securities and Commodities Authority, said it had suspended Arabtec pending clarification of media reports about strategic partners’ stake in the firm.
The suspension appeared to indicate that regulators are now taking a more active approach to volatility in Arabtec shares and disclosure of information about the company, after wild swings in the stock over the past two months destabilized the entire stock market.
“I think the regulator now is very conscious of what’s happening around the name and they want to make sure that the movement of the stock is not based on rumors,” said Ali Adou, portfolio manager at The National Investor in Abu Dhabi. “I think it’s a very good step.”
Saudi stocks slip; Bank Al Jazira drops 4.3 percent
Saudi stocks slip; Bank Al Jazira drops 4.3 percent
Stc Group issues US dollar-denominated sukuk with a total value of $2bn
RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.
The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.
It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.
The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy.
This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.
This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position.
It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.
