Dubai: Saudi Basic Industries (Sabic) shares fell from its high on Thursday, a day after Saudi Aramco announced the takeover of the chemical major.
Sabic shares rose as much as 2.7 per cent or 127.60 Saudi riyals before closing 0.32 per cent lower at 123.80 riyals.
“There was no reason for SABIC to gain as the takeover is not expected to have any impact on the minority shareholders. Price which was agreed was as per the market expectations,” Muhammad Shabbir, Head of Funds and Portfolios at Saudi Kuwaiti Finance House (SKFH) said. Saudi Aramco agreed to buy Sabic for $69.1 billion. The Saudi Public Investment Fund, which has a 70 per cent stake in Sabic, will transfer the stake to Saudi Aramco.
“It is just a government transfer with no immediate impact on the market,” Shabbir said. The Tadawul index closed 0.26 per cent higher at 8,788.84.
Foreign buying has supported the Tadawul index so far in the year, and the gauge has gained 12 per cent since January 1,
“We expect some correction after the run-up,” Shabbir said. In other stocks, Al Rajhi Bank closed 0.95 per cent higher at 106.60 riyals.
In Dubai, banks such as Emirates NBD, Dubai Islamic Bank surged. Emaar Properties recovered in late trade. The Dubai Financial Market General index closed 0.65 per cent higher at 2,631.27.
Emirates NBD closed 0.5 per cent higher at Dh10.15. Dubai Islamic Bank closed 2.51 per cent higher at Dh4.90. Emaar Properties closed more than a per cent higher at Dh4.68. Emaar Malls closed 1 per cent lower at Dh1.74. Emaar Development closed 0.26 per cent lower at Dh3.88.
The ADX index fell in early trade due as Etisalat, Abu Dhabi Commercial Bank and Union National Bank went ex-dividend. However, First Abu Dhabi Bank recovered in late session, causing a sharp reversal in the Abu Dhabi index.
The Abu Dhabi Securities Exchange general index closed 0.16 per cent lower at 5,101.00. Fab closed 1 per cent higher at Dh15.26. ADCB closed 1.46 per cent lower at Dh9.48.
“Lack of fundamental news is negatively impacting the market in addition to current global concerns over a coming recession following the slowdown. Investors should be expected to monitor first quarter results and reposition for the third quarter closer to the Expo year,” Issam Kassabieh, senior financial analyst at Menacorp said.
Elsewhere in the Gulf, the Muscat MSM 30 index closed 1.03 per cent lower at 4,005.56.