Saudi stocks get boost from oil, Mobily loan waiver

Saudi shares rose early on Tuesday, lifted by firmer oil prices and news that Saudi Arabia’s second-largest telecommunications operator Mobily had secured waivers from all its lenders on breaches of loan agreements. Real estate stocks lifted the Dubai index. Etihad Etisalat (Mobily) jumped 6.7 per cent after it said lenders who had not already agreed […]

Saudi shares rose early on Tuesday, lifted by firmer oil prices and news that Saudi Arabia’s second-largest telecommunications operator Mobily had secured waivers from all its lenders on breaches of loan agreements.

Real estate stocks lifted the Dubai index.

Etihad Etisalat (Mobily) jumped 6.7 per cent after it said lenders who had not already agreed in December to waive breaches in loan terms had now done so.

Rivals Saudi Telecom and Zain Saudi were up 0.8 and 1.1 per cent respectively.

Petrochemical shares were strong with the sub-index rising 1.9 per cent, heading for its fifth straight session of gains after Brent crude oil hit another high for this year.

Saudi Basic Industries, the largest petrochemical producer, rose 0.9 per cent. The main index was up 1.0 per cent.

In Dubai the index added 0.6 per cent with Arabtec climbing 0.7 per cent to Dh1.46 after it said its June 1 general assembly would aim to approve a plan to use “all the statutory reserve to extinguish part of the company’s losses”. It gave no details. Arabtec has reported losses in the past six quarters, which it blamed on increased costs and tough market conditions.

In the last few days analysts at Deutsche Bank cut their price target for Arabtec stock to Dh1.11 from Dh1.14 while maintaining a “hold” rating, and EFG Hermes raised its target to Dh1.13 from Dh1.07 while keeping a “sell” rating.

Blue chip Emaar Properties jumped 2.3 per cent.

Vodafone Qatar dropped 3.5 per cent after the company reported a net loss of 180 million Qatari riyals in the latest quarter, versus a loss of 66m riyals a year earlier.

Doha’s main index was down 0.03 per cent.

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Source: Business

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