|18 September, 2019

Mideast Stocks: Saudi stocks gain on oil supply restoration hopes

23 of 30 blue chips decline in Egypt

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

REUTERS/Faisal Al Nasser

Saudi Arabia's stock market rebounded on Wednesday, on back of financial and petrochemical shares after the kingdom's energy minister said that full oil production would be restored by end of September.

Saudi Energy Minister Prince Abdulaziz bin Salman on Tuesday sought to reassure markets, saying the kingdom would restore its lost oil production by month-end, having returned supplies to the levels they were prior to the weekend attacks on Aramco's plants in Abqaiq and Khurais.

Aramco's chief executive said the state-owned oil giant was able to supply the local market and would compensate local refineries with additional feed in the next couple of days.

The Saudi Arabian index was 0.7% higher as Al Rajhi Bank added 1.8% and Banque Saudi Fransi advanced 2.6%.

Petrochemicals also rose after saying their feedstock supplies from Aramco significantly improved with a 2% increase in the shares of Saudi Fertilizers Co (SAFCO), which announced that its supply had returned to normal. 

Qatar's index was up 0.7%, driven by a 5.6% jump in Mesaieed Petrochemicals and a 6.2% surge in Qatar Insurance Company.

Kuwait's index decreased 2.2%, extending its losses for the sixth straight session, with 14 of the 19 stocks on the index declining.

Kuwait Finance House was down 4.4% and National Bank of Kuwait lost 2.3%.

In Dubai, the index dropped 0.9%, pressured by financial and real estate stocks.

Dubai's largest lender, Emirates NBD, declined 1.1%, while developer Emaar Properties closed 1.3% lower.

Dubai house prices will decline sharply this year and next, according to property market experts in a Reuters poll conducted earlier in September. 

In Abu Dhabi, the index lost 0.3%, with the country's largest lender, First Abu Dhabi Bank, declining 0.4% and Abu Dhabi Commercial bank down 1.4%.

Egypt's blue-chip index edged down 0.1%, with 23 of 30 stocks falling.

Juhayna Food Industries plunged 5.7% and Credit Agricole Egypt  eased 2.4%.

(Reporting by Ateeq Shariff and Shamsuddin Mohd in Bengaluru; Editing by Steve Orlofsky) ((AteeqUr.Shariff@thomsonreuters.com; +918067497129;))

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