DUBAI, July 30 (Reuters) - Disappointing second-quarter results from large cap Saudi Arabian companies were the main drag on the local index in early trade on Sunday while neighbouring bourses were mostly weak.
Shares in Saudi Basic Industries (SABIC) lost 1.8 percent after 20 minutes of trade after it reported a second- quarter net profit of 3.71 billion riyals ($989.33 million), below analysts' estimates of 4.6 billion riyals and down by a quarter from the year ago period.
Analysts at NCB Capital said lower than expected margin was due to losses in SABIC's steel business.
Shares in Alawwal Bank shed 2.2 percent after the country's oldest bank reported a 40 percent drop in second quarter net profit to 322 million riyals ($86 million). NCB Capital and EFG Hermes had forecast profit of 369 million riyals and 368.6 million riyals respectively.
The bank said its operating expenses jumped 48.4 percent because of higher impairment charges for credit losses, depreciation and amortisation, and higher rent expenses.
Most other banks have reported earnings with mixed results.
Shares in Saudi Cement dropped 0.6 percent to 50 riyals after reporting a second-quarter net income of 94 million riyals ($25.07 million), declining by almost two-thirds from last year's result and well below analysts' estimate of 131 million riyals.
NCB Capital said this was due to lower than expected selling prices. The company reported 269.5 million riyals in total revenue for the period, almost half of that made in the second quarter of 2016.
The Saudi stock index was down 0.3 percent.
In Doha, the stock index was down 0.5 percent as the largest listed petrochemical maker Industries Qatar fell 1.6 percent; the company has not yet reported second quarter results.
In the United Arab Emirates, the Abu Dhabi index was down 0.2 percent as natural gas explorer Dana Gas fell 1.6 percent and heavyweight telecommunications operator Etisalat lost 0.8 percent.
Dubai's index was up 0.2 percent because of gains in small and mid-sized companies. Gulf General Investment was the most active stock, up 2.8 percent.
($1 = 3.7500 riyals) (Reporting by Celine Aswad; Editing by Saeed Azhar and Jane Merriman)