Mideast Stocks: Dubai outperforms on property shares as banks aid Saudi

8 of 11 Saudi Arabian banks gain

  
Image used for illustrative purpose. Traders monitor stock information at Dubai Financial Market, in Dubai, United Arab Emirates, June 5, 2017.

Image used for illustrative purpose. Traders monitor stock information at Dubai Financial Market, in Dubai, United Arab Emirates, June 5, 2017.

REUTERS/Stringer

Dubai's stock market rose on Monday as property shares advanced, while Saudi Arabia extended gains from the previous session following an extension of output cuts by OPEC+ nations.

The Organization of Petroleum Exporting Countries, Russia and other producers - a group known as OPEC+ - agreed in April to cut supply by 9.7 million barrels per day (bpd) in May and June. They agreed on Saturday to sustain those cuts through July. 

Meanwhile, Saudi energy minister Prince Abdulaziz bin Salman told a news conference on Monday that the kingdom and Gulf allies Kuwait and United Arab Emirates would not cut by an extra 1.18 million bpd in July as they are doing this month. 

Saudi Arabia's benchmark index ended 0.5% up, with Banque Saudi Fransi rising 6.3% and Al Rajhi Bank 0.3% higher.

Dubai's main share index rose a further 1.4%, a day after it registered its biggest intraday gain in two months. Blue-chip developer Emaar Properties leapt 6.5%, while Union Properties surged over 13%.

Elsewhere, Dubai Islamic Bank, which has hired banks to market dollar-denominated sukuk, added 0.5%. 

The Abu Dhabi index eased 0.8%, driven down by a 2.3% slide in First Abu Dhabi Bank and a 3.2% decline in Abu Dhabi Commercial Bank.

In Qatar, the index eased 0.4%, with Qatar National Bank, the Gulf's largest lender, dropping 1.1% and petrochemical firm Industries Qatar losing 1%.

Outside the Gulf, Egypt's blue-chip index edged up 0.3%, extending gains from the previous session boosted by the International Monetary Fund's (IMF) agreement.

IMF said on Friday that it had reached a staff-level agreement with Egypt for a one-year, $5.2 billion standby loan to help it grapple with the coronavirus pandemic. 

Tobacco monopoly Eastern Company gained 2.7%, whereas Egyptian investment bank EFG Hermes increased 2.9%.

(Reporting by Ateeq Shariff in Bengaluru, editing by Ed Osmond) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))

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