UAE shares lower in early trade, Saudi bourse gets lift from petrochemicals

A rebound in Saudi Arabian petrochemical shares helped lift the index in early trade on Tuesday, while other Gulf bourses were weak. Saudi’s Yanbu National Petrochemicals (Yansab), a large cap petrochemical producer, jumped 5.2 per cent after the company announced late on Monday that its board recommended a cash distribution of 1.5 Saudi riyals per […]

A rebound in Saudi Arabian petrochemical shares helped lift the index in early trade on Tuesday, while other Gulf bourses were weak.

Saudi’s Yanbu National Petrochemicals (Yansab), a large cap petrochemical producer, jumped 5.2 per cent after the company announced late on Monday that its board recommended a cash distribution of 1.5 Saudi riyals per share for the first half of the year, higher than the 1 riyal per share for first half of 2015. The total dividends in 2015 and 2014 were 2 riyals and 3 riyals respectively.

“We expect the company to pay a dividend of 2.5 riyals per share in 2016, and based on this the dividend yield is expected to be 6.3 per cent,” said a note by Saudi firm NCB Capital.

Saudi Basic Industries climbed 1.3 per cent, after the company said on Monday it had signed an agreement with Shenhua Ningxia Coal Industry Group to build a petrochemical complex in China.

Yamamah Steel, which was listed on the exchange this month, rose 3.2 per cent after the company said it will pay a cash dividend of 1.5 riyals per share.

The index was up 0.6 per cent after 45 minutes of trade.

Dubai’s index fell 0.7 per cent, poised to end the month down more than 5 per cent, its first monthly drop since January of this year.

Builders Drake & Scull and Arabtec lost 0.7 and 1.4 per cent respectively, while Emaar Properties was down 1.0 per cent, heading for its second session of declines.

In Abu Dhabi blue-chip lender Abu Dhabi Commercial Bank and First Gulf Bank were the main drag on the index which fell 0.7 per cent. Each stock was down more than 1.0 per cent.

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Source: Business

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