Mideast Stocks: Most Gulf indexes fall in early trade; Saudi edges up

Saudi Arabia's benchmark index gained 0.2%


Most major stock markets in the Gulf fell in early trade on Tuesday, although the Saudi index bucked the trend to edge up ahead of an OPEC+ meeting.

The Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for the next several months.

The group is likely to keep its oil output policy unchanged and continue with its planned modest production increase, three OPEC+ sources told Reuters. 

Saudi Arabia's benchmark index gained 0.2%, helped by a 0.7% rise in Saudi National Bank and a 0.2% increase in Al Rajhi Bank.

In Abu Dhabi, the index dropped 0.5%, with Emirates Telecommunications Group losing 1.3% and Abu Dhabi National Hotels Company (ADNH) diving about 10%.

Abu Dhabi state-owned holding company ADQ has withdrawn an offer to combine Abu Dhabi National Hotels Company (ADNH) with Abu Dhabi National Exhibitions Company (ADNEC), ADNH said in a bourse filing. 

ADQ said in June it had submitted an offer to ADNH to combine it with ADNEC, the exhibitions company, to "create one of the largest hospitality, events and catering powerhouses in the region" with assets of around 20 billion dirhams ($5.45 billion).

ADNH did not disclose why the offer was withdrawn.

Dubai's main share index fell 0.2%, hit by a 0.6% fall in sharia-compliant lender Dubai Islamic Bank and a 0.4% drop in Emirates NBD Bank.

Dubai Islamic Bank is planning to soon sell U.S. dollar-denominated senior sukuk, or Islamic bonds, Reuters reported on Tuesday, citing two sources. 

Several issuers from the Gulf are expected to return to the international debt markets in the next few weeks following a lull in activity over the summer, bankers said.

The Qatari index eased 0.2%, with Qatar Islamic Bank dropping 0.6%.

($1 = 3.6728 UAE dirham)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Pravin Char) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))

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