Sunday, 20 October 2024

Most Gulf markets slip on regional tensions, weak oil | Reuters

Most Gulf markets slip on regional tensions, weak oil | Reuters


Most stock markets in the Gulf ended lower on Sunday, dragged down by escalating conflict in the region and weakening oil prices.

Israel struck what it said were Hezbollah arms facilities in southern Beirut on Saturday after the Lebanese armed group fired rockets into northern Israel and a spokesman said a drone was launched at Prime Minister Benjamin Netanyahu's holiday home.

Promises by Israel and its enemies Hamas and Hezbollah to keep fighting have chilled hopes that the death of Hamas leader Yahya Sinwar on Wednesday might lead to truces in Gaza and Lebanon and prevent further escalation in the Middle East.

Saudi Arabia's benchmark (.TASI), opens new tab dropped 0.2%, hit by a 1.8% fall in ACWA Power Company (2082.SE), opens new tab and a 0.7% decrease in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.

Oil - a catalyst for the Gulf's financial markets - fell on Friday, declining more than 7% on the week after data showed China's economic growth slowed and investors digested a mixed Middle East outlook.

Lower prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.

In Qatar, the index (.QSI), opens new tab retreated 1.1%, as all its constituents were in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which was down 1.5%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 2%, weighed down by a 3.2% slide in Commercial International Bank (COMI.CA), opens new tab.

#Saudi Extra Offers 30% Stake in Finance Unit in Riyadh IPO Boom - Bloomberg

Saudi Extra Offers 30% Stake in Finance Unit in Riyadh IPO Boom - Bloomberg

Saudi Arabia-based United Electronics Co., known as Extra, will proceed with the listing of a 30% stake in its financial services unit on the Saudi main market.

The subsidiary, United International Holding Co., parent of Tasheel Finance, announced on Sunday its plan to float 7.5 million shares. The entire amount raised will be distributed to Extra, the selling shareholder, according to a statement.

HSBC Saudi Arabia and EFG Hermes KSA have been hired to arrange the offering, which may come in the next few weeks.

The electronics retailer established Tasheel Finance in 2019 to provide funding solutions to its costumers. Tasheel provides credit financing among other digital services. The subsidiary saw 59 million riyals ($15.7 million) in profit in the third quarter, representing 11% growth year on year.

Saudi Arabia has seen more than $15 billion in share sales this year, largely driven by Saudi Aramco’s $11.2 billion secondary offering in July.

So far this year, Riyadh has hosted a range of IPOs including a local hospital group, a human resource firm and a perfume maker.

Buy-now-pay-later firm Tabby is also considering plans to list.