-Egypt down for fourth straight day

DUBAI: Saudi Basic Industries (SABIC) helped lift Riyadh’s stock market on Wednesday after it reported a third-quarter net profit at the top end of forecasts, but a loss at Qatar’s third- largest bank dragged that market lower. Egypt slid for a fourth straight session.

Riyadh’s stock index rebounded 1.1 percent, ending three days of declines and trimming its loss since Sunday to 3.0 percent.

SABIC, the Gulf’s largest petrochemical producer, climbed 1.8 percent to 84.00 riyals after posting a net profit of 5.22 billion riyals ($1.39 billion) in the three months to Sept. 30, down 6.8 percent from a year ago. Analysts polled by Reuters had on average predicted 5.05 billion riyals.

Riyad Capital said in a note that although SABIC’s sales dipped on a quarterly and yearly basis, margins expanded to offset some of that negative impact. It raised its target price for SABIC to 86.00 riyals from 80.00 riyals but maintained a “neutral” rating.

“We have increased gross margin assumptions for the full year and beyond as global petrochemical spreads have been healthy.”

Roughly two-thirds of Saudi petrochemical producers have now reported third-quarter earnings, with generally weak results. Nama Chemicals, a mid-sized producer, said on Wednesday it made a loss of 32.6 million riyals versus a loss of 24.0 million in the same period of 2015; its shares closed flat.

Middle East Healthcare jumped 7.8 percent after its quarterly net income rose 1.4 percent to 92 million riyals.

The positive mood spilled into some shares that were hit earlier this week by disappointing results. Lender Saudi Hollandi rebounded 2.4 percent.

But Emaar the Economic City, developer of an industrial city near Jeddah, dropped 1.6 percent after reporting a third-quarter net loss of 81 million riyals versus a profit of 8 million riyals a year ago.

In Dubai, the index built positive momentum in the last hour of trade to close up 0.1 percent. No major companies posted fresh results; DXB Entertainments climbed 3.3 percent ahead of opening its theme parks at the end of this month.

Gains in blue chips helped boost Abu Dhabi’s stock index 0.9 percent. First Gulf Bank added 1.8 percent, trimming its lossesto 1.3 percent since Sunday.—Reuters