JEDDAH — Major Gulf stock markets edged up on Monday after Sunday's sell-off but Saudi Arabia lagged because telecommunications operator Mobily tumbled following yet another negative earnings restatement. The main Saudi index edged up 0.15 percent to 8,820.65 points, having dropped 3.2 percent in the previous session. Petrochemicals giant Saudi Basic Industries was the main support, rising 1.3 percent after falling 3.9 percent on Sunday in response to a fresh drop in oil prices.
Another heavyweight, Saudi Arabian Mining (Ma'aden), jumped 3.5 percent and almost fully recovered from Sunday's sharp decline.
But Etihad Etisalat (Mobily), the kingdom's most traded stock on Monday, tumbled 7.4 percent to SR31.30, its lowest close since mid-2009.
Mobily last week restated results for 2013-14 and the first quarter of 2015, slashing total profits over the period by nearly SR1.76 billion ($470 million) in its latest attempt to resolve an accounting scandal.
The firm, whose shares had been suspended since June, also posted a net loss of 900.9 million riyals for the second quarter of this year.
Mobily's latest results were unaudited, however, and they did not appear to clear up uncertainty about the company among many investors. Some analysts covering the stock have suspended their performance and fair value estimates for Mobily pending the release of detailed and audited financial statements. "We are keeping Mobily under review until the release of the audited financials, to get a clear picture of the company's financial situation," NBK Capital wrote.
Other Gulf markets did slightly better although none of them fully recovered Sunday's losses as oil prices continued to fall on Monday. Dubai's index edged up 0.4 percent to 4,120 points.and Emaar Properties, the emirate's biggest listed developer, was the most traded stock, rising 1.3 percent.
The company posted a 16 percent increase in second-quarter profit to 1.18 dirhams ($321 million) on Sunday. SICO Bahrain had forecast Emaar's quarterly profit would be 817 million dirhams and Naaem brokerage had expected 1.09 billion dirhams. "Overall, we view the preliminary results as positive; in specific, given continued strong performance of the real estate business in Dubai, and to an extent, also the international markets," Naeem property analysts Harshjit Oza and Amr Eid said in a note. Islamic mortgage lender Amlak Finance, the second most traded stock, slipped 0.5 percent to 2.14 dirhams after tumbling 8.5 percent in the previous session.
The stock is still more than 100 percent up since it resumed trading in June after a six-year suspension and a debt restructuring. Many analysts believe the stock may be overvalued, and oil's fresh drop may now be encouraging some speculators to cut their exposure.
Abu Dhabi's index edged up 0.6 percent to 4,821 points and Aldar Properties, that emirate's top developer, climbed 1.5 percent ahead of its earnings announcement on Tuesday .— SG/Reuters
