Gulf stock markets dropped Sunday as sharp falls in oil prices late last week outweighed a few positive corporate earnings in Saudi Arabia. Riyadh's stock index fell 1.2 percent as losses accelerated in the final hour of trade, with four-fifths of traded stocks declining. Rabigh Refining and Petrochemical Co declined 2.5 percent after it reported a 79.6 percent slide in net profit to 103.2 million riyals ($27.5 million), blaming lower prices and tighter refinery margins. Saudi Arabian Fertilizers Co (SAFCO) dropped 0.4 percent after it said quarterly profit halved to 299 million riyals, broadly in line with an average forecast by analysts for 290.5 million riyals. But Saudi Kayan Petrochemical climbed 1.4 percent after it swung to a net profit in the second quarter of 91.02 million riyals, ending a run of five straight quarterly losses and beating analysts' forecast for another loss. NCB Capital said in a note that it was the highest net profit since Kayan began commercial production in 2011 and estimated the company achieved a record gross margin of 18.5 percent, beating NCB's forecast of 4.6 percent. "The better-than-expected results can be attributed to higher sales volumes, improved operating rates, higher spreads, and a reduction in other production expenses" the note said. Packaged food producer Halwani Brothers Co slumped 4.7 percent. The company reported a 35.5 percent increase in second-quarter net profit, partly because of non-recurring gains, but operating profit fell. Company for Cooperative Insurance jumped 4.4 percent after it reported an 11.0 percent rise in second-quarter profit before tax. Elsewhere in the Gulf, trading activity was subdued in a broad sell-off. Dubai's index fell 0.8 percent as heavyweight Emaar Properties fell 2.1 percent to 6.85 dirhams ($1.87), retreating from major technical resistance on its October peak of 7.01 dirhams. Hopes that the resistance would break caused the stock to outperform last week. In Abu Dhabi, the index dropped 0.5 percent, weighed down by losses in mid- and large-cap shares, with Dana Gas declining 1.7 percent. Qatar's index slid 0.5 percent with losers outnumbering gainers 13 to five. Masraf Al Rayan, which gained 1.6 percent last week, fell back 0.7 percent. SUNDAY'S HIGHLIGHTS SAUDI ARABIA * The index fell 1.2 percent to 6,524 points. DUBAI * The index dropped 0.8 percent to 3,517 points. ABU DHABI * The index declined 0.5 percent to 4,568 points. QATAR * The index fell 0.5 percent to 10,486 points. KUWAIT * The index edged up 0.1 percent to 5,395 points. BAHRAIN * The index edged up 0.04 percent to 1,161 points. Source: Reuters
