Saudi stocks recorded their biggest one day drop in two weeks yesterday, dragged lower by Saudi Basic Industries Corporation (SABIC), the Middle East's largest listed company.
Saudi Arabia's Tadawul index fell 1.7 per cent yesterday, the biggest one-day drop in two weeks, as SABIC dropped 8.4 per cent after it reported on Saturday that second-quarter profits fell 76 per cent compared with the same quarter last year because the global recession had dampened demands for plastics and fertilisers.
"The world economy is not showing any great signs of recovery and so one can't expect SABIC to have recovered either - it's a global cyclical company," said Keith Edwards, the head of asset management at the Doha-based investment company The First Investor.
Bank stocks also suffered after Saudi Hollandi Bank reported a 72 per cent drop in second-quarter earnings, markedly below analysts' forecasts. Its shares fell 4.8 per cent. "Saudi Hollandi's profit fell dramatically on provisions and it is known for its conservative attitude and so tends to take forward provisions rather than wait until after the event," Mr Edwards said. "So there are clearly problems in the banking sector."
Mr Edwards said he expected provisions at other Saudi financial institutions to increase in the third quarter as the scale of potential losses at the struggling Saudi conglomerates Saad Group and Al Gosaibi becomes clearer.
Saudi International Petrochemical Company dropped 7.1 per cent yesterday after quarterly profits declined 99.6 per cent. Overall, petrochemicals contributed almost 71 per cent to the drop in the Tadawul All Share Index.
Elsewhere in the Gulf, Kuwait's index fell 0.5 per cent, Qatar's index ended trading 0.35 per cent lower and Bahrain's benchmark closed 0.83 per cent down. In the UAE, markets were closed for a holiday.
Ingmar Burgardt, of the BHF Bank in Abu Dhabi, said Saudi investors' sell-off of SABIC shares exacerbated the Tadawul index's fall. "It makes a significant impact when you have a few large sell orders during a period of low activity," Mr Burgardt said.
Gulf markets generally sustain low trading during summer months because many investors leave for holidays, he said. Mr Burgardt added that foreign institutions who invested in regional bourses last year, but left when the markets tumbled, have not yet returned to the Gulf. "We will not see the lows [of the early part of the year] again but we will see some lower prices," he said.
* with agencies
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Company%20profile
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The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
What is Diwali?
The Hindu festival is at once a celebration of the autumn harvest and the triumph of good over evil, as outlined in the Ramayana.
According to the Sanskrit epic, penned by the sage Valmiki, Diwali marks the time that the exiled king Rama – a mortal with superhuman powers – returned home to the city of Ayodhya with his wife Sita and brother Lakshman, after vanquishing the 10-headed demon Ravana and conquering his kingdom of Lanka. The people of Ayodhya are believed to have lit thousands of earthen lamps to illuminate the city and to guide the royal family home.
In its current iteration, Diwali is celebrated with a puja to welcome the goodness of prosperity Lakshmi (an incarnation of Sita) into the home, which is decorated with diyas (oil lamps) or fairy lights and rangoli designs with coloured powder. Fireworks light up the sky in some parts of the word, and sweetmeats are made (or bought) by most households. It is customary to get new clothes stitched, and visit friends and family to exchange gifts and greetings.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%202-litre%204-cylinder%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E153hp%20at%206%2C000rpm%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E200Nm%20at%204%2C000rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E6-speed%20auto%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E6.3L%2F100km%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh106%2C900%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
The Gentlemen
Director: Guy Ritchie
Stars: Colin Farrell, Hugh Grant
Three out of five stars