JEDDAH – Shares in Saudi Arabia managed to recoup losses posted early in the day and the stock benchmark Tadawul All Share Index closed 0.36 percent higher at 6,859.59 points Saturday, on positive second quarter corporate results for some listed companies. Saudi Arabia's Dar Al-Arkan, the Kingdom's largest property developer, said its second-quarter net profit rose 11 percent to SR331 million ($88 million), compared with SR298 million in the same period a year earlier, it said in a bourse statement Saturday. Saudi dairy and food producer Almarai Co. posted Saturday an 8.7 percent year-on-year rise in its second quarter net profit. The Gulf's largest dairy firm made SR379.5 million ($101.2 million) in the three months ending June 30, compared with SR349.3 million in the same period a year earlier, it said. Jarir Marketing Co, Saudi Arabia's largest stationery and electronic products retailer, said Saturday its second-quarter profit increased 8.4 percent. It said estimated net profit reached SR106.8 million compared to SR98.5 million in the same period last year. However net income was down by 35 million compared to the previous quarter, the statement said. The estimated net profit for the first half of the year was up 15.2 million at SR271 million, it added. The shares were depressed at the opening following weak jobs data in the US heightening concern about a slowing US economy and Europe's efforts to tame its debt crisis disappointed investors. The stocks were also dragged down by losses in the petrochemical and banking stocks after oil prices dipped Friday. “There is a very uncertain global backdrop," said Jarmo Kotilaine, chief economist at Jeddah-based National Commercial Bank. “We will get a steady trickle of bad news, which will depress markets. It is very hard to see a clear trend emerging in this situation." “The increase in net income for the six month period and the second quarter this year compared... is primarily due to the increase in real estate sales, which is attributable to the demand increase on the company's products," the statement said. Earlier in the day, the shares opened lower dragged down by losses in the banking stocks after oil prices dipped on Friday. “There is a very uncertain global backdrop," said Jarmo Kotilaine, chief economist at Jeddah-based National Commercial Bank. “We will get a steady trickle of bad news, which will depress markets. It is very hard to see a clear trend emerging in this situation." The price of oil fell this week even though Iran staged missile tests and renewed threats to block key oil shipments out of the Gulf. Benchmark US crude dropped by $2.77, or 3.2 percent, Friday to end the week at $84.45 per barrel in New York. Iran sparked a big price increase earlier this year as it sparred with the West over its nuclear program. When Iran held military exercises in the Gulf at the beginning of the year, oil prices climbed more than 4 percent. Fears about a prolonged conflict eventually drove benchmark oil to near $110 per barrel in February. The jump helped push US gasoline prices close to $4 per gallon. Brent crude, which helps set the price of imported crude used to make gasoline, fell by $2.51, or 2.5 percent, to end the day at $98.19 per barrel in London. – SG
