Oil's Drop May Weigh on Gulf Markets
Gulf stock markets may come under pressure on Sunday after oil prices and global equities fell. Saudi Arabia's Mobily, whose shares are still suspended, may resume trading after announcing second-quarter earnings.
U.S. crude posted its biggest monthly drop - 21 percent - since the 2008 financial crisis on Friday after a string of losses in July triggered by China's stock market slump and signs that top Middle East producers were pumping crude at record levels. Brent lost 5 percent on the week and 18 percent on the month.
Meanwhile, U.S. stock indexes edged down on Friday as sharp drops in energy stocks eclipsed labour market data which bolstered expectations on Wall Street that the U.S. Federal Reserve could delay an interest rate hike this year.
Locally, Saudi Arabia's Etihad Etisalat (Mobily) restated results for the last 27 months on Thursday, slashing total profits over the period by nearly 1.76 billion riyals ($470 million) in its latest attempt to resolve an accounting scandal.
The company may announce second-quarter earnings on Sunday and if it does, the regulator may quickly allow its shares to resume trading, although no announcement has been made.
Another firm in the kingdom, Red Sea Housing Services , may come under selling pressure after its second-quarter profit dropped 58 percent on lower sales and margins. The firm provides housing solutions for the oil and gas industry among others.
Investment firm Kingdom Holding, on the other hand, reported a 12.6 percent increase in quarterly profit on Sunday and may attract buyers.
In Egypt, the central bank at the end of last week kept interest rates unchanged, as most analysts had expected. But going forward, some expect a more dovish stance.
"...With inflation set to fall sharply, rate cuts are likely to come back onto the cards," William Jackson, senior emerging markets economist at Capital Economics in London, said in a note. "We have pencilled in a 50bp cut, to 8.25 percent, with the most likely timing being the next meeting on Sept. 17."
(Reporting by Olzhas Auyezov)
