Oil price positive, SABIC earnings miss may weigh on Saudi

DUBAI- 30 July 2017: A continued rebound in oil prices is positive for Gulf stock markets on Sunday but earnings miss by petrochemical giant Saudi Basic Industries may weigh on that market.

Brent oil climbed over $1 a barrel overnight to above $52.50 on Friday. However, thin trading volumes and narrow ranges in recent weeks suggest concern about second-quarter corporate earnings will prevent any big rise in equities.

Saudi Basic Industries reported a drop in second-quarter net profit to 3.71 billion riyals ($989 million) from 4.96 billion riyals a year earlier; analysts had on average forecast a profit of 4.56 billion riyals.

Saudi Cement also missed estimates as quarterly profit sank to 94 million riyals from 249 million riyals; analysts had expected 131 million riyals.