STC weighs on #Saudi bourse; #Dubai extends gains | Reuters

STC weighs on Saudi bourse; Dubai extends gains | Reuters

The Saudi Arabian stock market fell in early trade on Sunday, weighed down by a sharp fall for Saudi Telecom Company (STC) after a secondary share offering.

The benchmark index (.TASI) dropped 0.5%, dragged down by a 4.4% slide in Saudi Telecom Company (7010.SE).

Saudi sovereign wealth fund Public Investment Fund (PIF) set the final price for the sale of 120 million shares in STC at 100 riyals per share, at the lower end of an earlier price range of 100 riyals to 116 riyals per share, according to an announcement on the bourse by one of the deal's lead managers. read more

PIF is set to raise 12 billion riyals ($3.2 billion) through the sale of a 6% stake in STC after it priced the deal in a secondary share offering.

In Dubai, the main share index (.DFMGI) gained 0.2%, supported by a 0.6% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

Dubai's deputy ruler and finance minister Sheikh Maktoum Bin Mohammed announced the listing of Emirates Central Cooling Systems Corporation (Empower), the emirate's media office reported on Saturday. read more

The government announced plans for Empower's flotation among 10 state-backed companies to be listed as part of efforts to boost activity on the local bourse.

The listings are aimed at making Dubai a more competitive market against bigger bourses in the region, such as those in Saudi Arabia and neighbouring Abu Dhabi, which are achieving larger listings and strong liquidity.

The Abu Dhabi index (.ADI), meanwhile, gained 0.7%, to snap three sessions of losses, led by a 2% rise in telecoms company Etisalat (ETISALAT.AD).

The Qatari index (.QSI) eased 0.1%, hit by a 1.2% fall for Commercial Bank (COMB.QA).