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Saudi, Egypt fall in line with oil, global equities

Reuters , Monday 27 Jul 2015
EGX
Traders work at the Egyptian Stock Exchange in Cairo (Photo: Reuters)
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Stock markets in Saudi Arabia and Egypt fell in early trade on Monday, dragged down by second-quarter earnings and the poor performance of oil and global bourses.

The main Saudi stock index fell 1.2 percent as stocks in the petrochemicals sector led losses.

Heavyweight Saudi Basic Industries dropped 2.8 percent after NBK Capital downgraded the stock to "hold" from "buy" and said its earnings had most likely peaked for the short term. The company had reported better-than-expected second-quarter earnings on Sunday.

Saudi International Petrochemical Co (Sipchem) tumbled 6.4 percent after announcing its quarterly profit had fallen 55 percent to 110.1 million riyals ($29.4 million). Analysts surveyed by Reuters had expected 133.3 million riyals.

National Industrialization Co (Tasnee) dropped 3.6 percent, having swung to a net loss for the second quarter. Analysts had forecast a profit.

Egypt's bourse fell 1.2 percent. Palm Hills Development, down 4.4 percent, was the biggest loser. The firm's new shares, placed among its owners in a rights issue, entered circulation on Monday, diluting the existing stock.

The Cairo index had surged as much as 8.1 percent this month as it rebounded from a one-year low hit on July 9, so some investors may be booking profits now.

Also, the global background is bleak on Monday as the CSI300 index of the largest listed companies in Shanghai and Shenzhen tumbled 8.5 percent and all major European markets are also down.

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