MIDEAST STOCKS- #Saudi funds, oil assurance steady stocks after Aramco attack | Reuters.com

MIDEAST STOCKS-Saudi funds, oil assurance steady stocks after Aramco attack

 | Reuters.com:

Saudi Arabian stocks were supported by domestic funds on Monday after top oil producer Saudi Aramco assured some clients that there will be no supply shortage as a result of Saturday's attack on its facilities.

The attack shut about 5% of global supply, sending oil prices as much as 19.5% higher, their biggest intra-day percentage gain since 1991's Gulf War.

Despite Aramco's assurance, concerns remain over oil supply which could be disrupted if the outage continued for long, while a full return to normal oil production volumes "may take months", sources told Reuters.

It could also have a wider impact on Saudi Aramco's planned initial public offering (IPO) on its home market. "The attacks could complicate Aramco’s IPO plans given rising security risks and potential impact on its valuation," Eurasia wrote in a note to clients.

After losing 1.1% on Sunday, the country's stock market index closed 1% higher with its biggest lender National Commercial Bank surging 4.2% and Al Rajhi Bank rising 1.4%. Traders cited buying by local and regional investors, as most foreign active investors have already exited the index.