Thursday 8 July 2021

MIDEAST STOCKS #Saudi index falls in early trade; IHC supports #AbuDhabi | Reuters

MIDEAST STOCKS Saudi index falls in early trade; IHC supports Abu Dhabi | Reuters

Saudi Arabian shares eased in early trade on Thursday, mirroring a decline in oil prices, while the Abu Dhabi index saw some support from International Holding (IHC).

Brent crude oil futures slipped by 23 cents, or 0.3%, to $73.20 a barrel by 0644 GMT, amid uncertainty over supply after the collapse of talks this week among major producers which could potentially cause the current output agreement to be abandoned.

The benchmark index (.TASI) in Saudi Arabia was down 0.3%, with Al Rajhi Bank (1120.SE) and the kingdom's largest lender Saudi National Bank (1180.SE) losing 0.9% each.

The movement in oil prices is a key catalyst for the Gulf region's financial markets.

Russia is leading efforts to close divisions between Saudi Arabia and the United Arab Emirates to help strike a deal to raise oil output in coming months, Reuters reported, citing three OPEC+ sources. read more

The UAE on Friday accepted a proposal from Saudi Arabia to raise output in stages by about 2 million barrels per day from August to December 2021, but rejected an extension of cuts beyond April 2022, when the current agreement expires, without adjusting its baseline production - the level from which any cuts are calculated.

In Abu Dhabi, the index (.ADI) added 0.2%, with conglomerate International Holding (IHC.AD) gaining 1%, on track to extend gains for a ninth consecutive session.

The winning streak started with the listing of its unit Alpha Dhabi (ALPHADHABI.AD) last week, in which IHC holds a 45% stake. read more

IHC, which operates in a range of sectors including healthcare and agriculture, has gone through rapid expansion across its major business sectors, resulting in sharp growth in its financials.

Dubai's main share index (.DFMGI) eased 0.1%, pressured by a 1.3% fall in logistic firm Aramex (ARMX.DU).

The Qatari benchmark (.QSI) edged up 0.1%, helped by a 1.2% rise in Qatar Gas Transport (QGTS.QA).

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