Tadawul closes at 3-1/2 month low

Saudi Arabia’s Tadawul All-Share Index dropped 1.5 percent Thursday to 6,336 points, a 3-1/2-month closing low, as Saudi Basic Industries Corp., the country's top petrochemical firm, fell 3.8 percent after it posted lower second-quarter profits.
SABIC reported a 23.2 percent drop in second-quarter net profit to SR4.74 billion ($1.26 billion) because of lower selling prices for its products.
The result beat the SR3.92 billion average estimate of analysts polled by Reuters. But SABIC, whose shares had risen in the past week on hopes for a positive earnings surprise, also said it would cut its dividend to SR2 per share for the first half of 2016 from SR2.5 a year ago.
Telecommunications operator Zain Saudi plunged its 10 percent daily limit after it reported its quarterly net loss widened to 329 million riyals. Analysts had on average forecast a 222.1 million riyal loss.
The largest food group in the kingdom, Savola, sank 3.2 percent after it reported a 43.2 percent fall in second-quarter net profit and cut its dividend, citing higher operating expenses and financial charges.
In Abu Dhabi, the index erased early gains to edge down 0.1 percent, as National Bank of Abu Dhabi fell 1.6 percent while First Gulf Bank was flat.
Both banks, which are expected to merge early next year, reported second-quarter profit drops on higher loan provisions but the results were broadly in line with expectations.
Dubai's index added 0.3 percent as courier firm Aramex climbed 3.6 percent to 4.00 dirhams after it reported a 36 percent rise in second-quarter net profit, beating analysts' estimates.
The Dubai exchange said a firm named Jaona Investment LLC bought 99 million Aramex shares at 4.40 dirhams each in a special trading session before the opening on Thursday, giving it 6.55 percent ownership. The seller was not identified and Jaona could not be reached for comment. Exchange data showed there was no change in the ownership of Aramex's biggest shareholder Levant Logistics Holding, which is 9.9 percent.
Emaar Malls, a subsidiary of Emaar Properties , lost 1.4 percent. The Dubai Mall operator reported an 11.2 percent rise in quarterly net profit.

Source: Arab News