Mideast Stocks: Financials lift #Saudi shares; blue-chip selloff dents Egypt | ZAWYA MENA Edition

Mideast Stocks: Financials lift Saudi shares; blue-chip selloff dents Egypt | ZAWYA MENA Edition

Major stock markets in the Gulf reversed course to end higher on Monday, with Saudi Arabian equities leading gains on the back of financial shares, while a blue-chip selloff tripped the Egyptian bourse.

Saudi Arabia's benchmark index rose 0.5%, with Al Rajhi Bank increasing 2.1%, after investment bank EFG Hermes raised its raised target price to 89 riyals ($23.73) from 73 riyals earlier.

"We underestimated Rajhi's success in gaining ground in mortgages and the robust mortgage growth in the Kingdom," EFG Hermes said in a report.

Oil giant Saudi Aramco gained 0.4%, as it maintained its pledge to declare a $75 billion dividend for 2020, despite a sharp decline in 2020 profits.

The company said on Monday its net debt-to-equity ratio more than doubled to 55% in 2020 from 26% a year earlier.

Abu Dhabi's index ended 0.2% higher, snapping three straight days of losses, with telecoms firm Etisalat adding 0.4%.

In Qatar, the index , also closed 0.1% higher, supported by a 0.9% gain in petrochemical maker Industries Qatar .

In Dubai, the main share index ended 1.2% lower, hit by a 3.5% plunge in Dubai's largest lender Emirates NBD , while blue-chip developer Emaar Properties was down 0.8%.

The COVID-19 pandemic has placed added pressure on the property sector in the region, where supply has outpaced demand for new houses and apartments for years in a market where foreigners account for the bulk of the population.

The Dubai real estate market is likely to remain in the doldrums over the next few years despite optimism over rising demand for certain market segments, with oversupply continuing to be a problem.