Mideast Stocks: SABB and Alawwal up on merger, Gulf otherwise quiet | ZAWYA MENA Edition

Mideast Stocks: SABB and Alawwal up on merger, Gulf otherwise quiet | ZAWYA MENA Edition:

A merger between Saudi Arabia's Alawwal Bank and Saudi British Bank was one of the few sources of excitement in Gulf stock markets early on Thursday, with most shares moving little.

The Saudi Arabian stock index was flat. Most banks were sluggish but Alawwal surged 3.5 percent to 14.70 riyals in heavy trade while SABB gained 2.2 percent to 32.95 riyals.

Under the binding deal, reached after the banks revealed merger talks earlier this year, SABB will pay for the merger by issuing new shares and the deal values each Alawwal share at 16.26 riyals, the banks said.