|10 November, 2019

Mideast Stocks: Banks lead Saudi up while financials drag down Dubai

Banks, real estate weak in Dubai

An investor uses his mobile phone at the Dubai Financial Market.

An investor uses his mobile phone at the Dubai Financial Market.

REUTERS/Mosab Omar

Saudi Arabia's stock market rose on Sunday, buoyed by banking shares in the wake of Saudi Aramco's release of its initial public offering prospectus, while Dubai was dragged down by financials and property stocks.

Saudi Aramco said in its prospectus that it will sell up to 0.5% of its shares to individual retail investors. But it did not include details of how much of the company would in total be floated or of any commitments from anchor investors. 

Earlier, Reuters had cited sources saying the oil producer could sell 1%-2% on the Saudi stock market.

Last week, the market regulator approved the listing of Aramco, following which Saudi shares fell, and analysts had said that local investors could be selling other shares in order to shift investments to the oil producer. 

In Saudi Arabia, the benchmark index was up 1%, with Al Rajhi Bank rising 2.5% and Saudi British Bank leaping 4.1%.

Among other stocks, Al Gassim Investment Holding rose 1.4% after it posted a third-quarter profit of 4.7 million riyals ($1.25 million), compared with 1.2 million riyals a year earlier. 

Al Sorayai Trading And Industrial Group also gained 1.4% after it swung to a third-quarter profit versus a loss year ago. 

In Dubai, the banking and real estate stocks dragged the index 1.4% lower, as its largest lender Emirates NBD BankENBD.DU dropped 2.2% and Emaar Properties was down 1.2%.

After the market close, Emaar reported a 20% rise in third-quarter net profit, which it attributed to a resilient performance by its property, mall and hospitality business.

In Abu Dhabi, the index fell 0.7%, extending losses for a straight third session, with market heavyweight First Abu Dhabi BankFAB.AD sliding 0.8% and Abu Dhabi Islamic Bank decreasing 4.7%.

The latter reported third-quarter net profit of 620 million dirhams, ($169 million) compared with 589.5 million dirhams in the same period last year. However, the profit was down when compared with the second quarter this year.

In Qatar, the index edged down 0.1% led by a 0.6% slide in the Gulf's largest lender Qatar National BankQNBK.QA and a 1.8% fall in Qatar Electricity And Water.

Markets in Egypt, Oman and Bahrain were closed for religious holidays.

($1 = 3.7501 riyals)

($1 = 3.6728 UAE dirham)

(Reporting by Shamsuddin Mohd in Bengaluru; Editing by Elaine Hardcastle) ((shamsuddin.mohd@thomsonreuters.com; +918067497252;))

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