HONG KONG: Shares in Chinese telecom firm ZTE, accused by US lawmakers of posing a security threat, tumbled 15.9 percent in Hong Kong after it released a third-quarter profit warning.
The stock closed at HK$ 10.56 a day after it projected a net loss between 1.9 billion yuan ($ 303 million) and 2.0 billion yuan for the three months to September 30, while the benchmark Hang Seng Index ended flat.
Operating revenue fell 13 percent in the same time period due to the “effect of delayed progress on certain international projects,” ZTE said in a filing to the Hong Kong stock exchange.
In Shenzhen, where ZTE is also listed, the stock closed down 10 percent, its daily limit, at 9.45 yuan ($1.50).
“We see ZTE’s disappointing (third-quarter) performance as not solely due to company-specific issues,” British bank Barclays said in a report, according to Dow Jones Newswires.
The bank said it believed the poor network operating environment would also apply to other Chinese companies in the sector, warning that the “worse may not be over yet.”
ZTE said Wednesday that US network giant Cisco Systems had ended a 2005 strategic cooperation agreement, after it was accused by US lawmakers of doing business with Iran and posing a security threat.
The US congressional investigation said ZTE and another Chinese telecom firm, Huawei, should be barred from US contracts and acquisitions.
The report by the House Intelligence Committee, officially released last Monday, said the two firms “cannot be trusted” to be free of influence from Beijing and could be used to undermine US security.
Beijing has urged Washington to “set aside prejudices” in response to the probe findings.
Shares in ZTE slump after profit warning
Shares in ZTE slump after profit warning
Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness
RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.
The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.
Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).
Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.
National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.
Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.
On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.
Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.
In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.
