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Abu Dhabi Shares Drop Most in Month on Saudi Decline, Earnings

Abu Dhabi’s shares dropped the most in almost a month after earnings in Saudi Arabia (SABIC), the Persian Gulf’s biggest economy, disappointed and oil declined.

Dana Gas (DANA), the fuel producer with $1 billion in debt maturing this month, lost 2.1 percent. Arkan Building Materials Co. (ARKAN), the owner of companies involved in the construction industry, fell for the first time in four days. The ADX General Index (ADSMI) slipped 0.5 percent, snapping a four-day advance in the biggest decrease since Sept. 18, to 2,641.84 at the close in Abu Dhabi. Qatar’s QE Index (DSM) rose 0.1 percent.

Shares in Saudi Arabia, the Gulf Cooperation Council’s biggest bourse, slipped 0.3 percent at the close in Riyadh to 6,661.99, the lowest since July 23, after local lenders, including Saudi British Bank (SABB), missed earnings estimates. The measure tumbled 1.7 percent yesterday. Oil fell on Oct. 12 after the International Energy Agency cut its forecast for global demand, saying slower economic growth may limit fuel consumption.

“Investors are waiting for quarterly results to come out, and Saudi was hit hard yesterday,” said Nabil Rantisi, managing director of brokerage at Abu Dhabi-based Menacorp. “Results for some companies may already be priced in.”

Industries Qatar

Dana Gas dropped 2.1 percent, the most since Sept. 30, to 46 fils after the shares surged 6.8 percent last week on investor bets the company may reach a resolution with investors on an Islamic bond maturing later this month. The company may post a 15 percent advance in quarterly results to 164 million dirhams ($45 million), according to EFG-Hermes Holding SAE. Arkan Building Materials, which may announce quarterly results on Nov. 14, lost 2.6 percent to 74 fils.

Crude for November delivery slipped 0.2 percent to $91.86 a barrel on the New York Mercantile Exchange on Oct. 12. The United Arab Emirates, Saudi Arabia and four other members in the Gulf Cooperation Council supply about a fifth of the world’s oil. The IEA cut the outlooks for 2012 and 2013 by 100,000 barrels a day each from a month earlier.

In Qatar, shares of Industries Qatar (IQCD) rose 1.1 percent to 144.1 riyals, the highest close since May 8, after the second- biggest petrochemicals maker in the Middle East posted a 27 percent increase in third-quarter profit, beating analysts’ estimates.

Dubai’s DFM General Index (DFMGI) declined 0.7 percent and Oman’s MSM30 Index (MSM30) lost 0.1 percent. Bahrain’s BB All Share Index (BHSEASI) climbed 0.4 percent and Kuwait’s Stock Exchange Price Index (KWSEIDX) rose 0.2 percent. In Egypt, the EGX 30 Index (EGX30) decreased 0.3 percent.

Israel’s TA-25 index fell 0.1 percent. The yield on the country’s 5.5 percent notes due January 2022 decreased two basis points, or 0.02 percentage point, to 4.16 percent.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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