Saudi slips, petrochemicals book profits

Saudi Arabia's index slips in early trade, as muted bank results leave investors wary and looking for direction from petrochemical company results. The index edges 0.2 per cent lower to 6,597 points, having gained as much as 10.5 per cent in March. "Should there be profit taking, 6,400 is a level we expect the market to drop to," says Yousef Kassantini, a Saudi-based financial analyst.

Al-Rajhi Bank trades flat after posting a 1 per cent increase in first-quarter net profit from a year earlier to 1.7 billion riyals ($453 million). Riyad Bank is also flat after reporting an 8.3 per cent rise in first-quarter profit following improved income from banking services. Bucking the trend, HSBC's Saudi affiliate Sabb Bank beat analyst forecasts, posting a 20.9 per cent rise in first-quarter net profit to 751mriyals ($200m) in the first three months, compared with 621m riyals a year earlier. The stock rises 2.5 per cent. Petrochemical index is down 0.6 per cent, with Saudi Basic Industries Corp (Sabic) falling 0.5 per cent and Saudi Arabian Fertilisers Co (Safco) losing 0.6 per cent.