World Markets

MIDEAST STOCKS-Saudi stocks claw back from losses as oil supply fears ease

Credit: REUTERS/FAISAL AL NASSER

Saudi Arabian stocks on Monday recouped some of the previous session's losses after top oil producer Saudi Aramco <IPO-ARMO.SE> assured some of its clients that there will be no shortage in supplies. [nFWN26603E]

Sept 16 (Reuters) - Saudi Arabian stocks on Monday recouped some of the previous session's losses after top oil producer Saudi Aramco IPO-ARMO.SE assured some of its clients that there will be no shortage in supplies.

An attack on Saudi Arabian oil facilities on Saturday shut about 5% of global supply, sending oil prices higher as much as 19.5%, their biggest intra-day percentage gain since the Gulf War in 1991.

Stock market sentiment was also helped by a Barclays statement that attacks were unlikely to reduce the kingdom's oil exports "dramatically".

Saudi's stock index .TASI was up 0.5%, with Al Rajhi Bank 1120.SE and its biggest petrochemical maker, Saudi Basic Industries 2010.SE, both climbing 0.9%.

The index is still in the red on a year-to-date basis after Sunday's decline, with a 0.5% loss for 2019.

Saudi stocks have been on the back foot in recent weeks due to expensive valuations, weak oil prices and concerns about the economic outlook.

Most other major Gulf markets traded lower. Qatar's index .QSI rose 0.3%, buoyed by a 1.4% gain in petrochemical maker Industries Qatar IQCD.QA and a 0.5% increase in Qatar National Bank QNBK.QA.

Dubai's index .DFMGI was down 0.3%, with blue-chip developer Emaar Properties EMAR.DU shedding 0.6%, while Dubai Islamic Bank DISB.DU dropped 0.7%.

Dubai property prices have slumped 25%-35% since mid-2014 with no respite in sight. Prices are likely to fall further this year and next amid a slowing economy and an oversupply of housing units.

The Abu Dhabi index .ADI edged down 0.2%, dragged by an 8.5% decline in Abu Dhabi National Energy (TAQA) TAQA.AD.

(Reporting by Shakeel Ahmad in Bengaluru; Editing by Subhranshu Sahu)

((shakeel.ahmad@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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