Gulf stocks extend losses on tanker attacks

The Dubai Financial Market. In the UAE on Sunday, the Dubai and Abu Dhabi indexes fell 0.7 percent and 0.2 percent. (AFP)
Updated 17 June 2019

Gulf stocks extend losses on tanker attacks

  • Cautious mood among investors as fears of military confrontation rise

DUBAI: Stock markets in the Gulf extended losses on Sunday reflecting a cautious mood among investors following last week’s oil tanker attacks. 

The attacks on the tankers in the Gulf of Oman on Thursday raised fears of a military confrontation in a vital shipping route for global oil supply and heightened tensions between Iran and the US, which have been in a standoff over Iran’s nuclear program. 

The Saudi index had dropped 1.6 percent on Thursday and fell a further 0.6 percent on Sunday after slight gains in early trade. Most Saudi banks were down, despite Sunday’s announcement by Saudi British Bank that its merger with Alawwal Bank was completed. 

HIGHLIGHTS

• Gulf stocks reverse early gains.

• Gulf of Oman tanker attacks dampen investor mood.

• Saudi banks mostly down despite SABB-Alawwal merger.

The two banks have combined to create the country’s third largest lender, becoming a single listed company after regulatory approvals. SABB’s shares shed 0.1 percent. Alinma Bank, however, gained 0.4 percent, and was one of the stocks registering the highest trading volume on Sunday. 

In the UAE, the Dubai and Abu Dhabi indexes fell 0.7 percent and 0.2 percent, respectively. The Dubai market had risen earlier in the day, boosted by DAMAC Properties and Union Properties, which closed up 2.2 percent and 0.5 percent, respectively. But heavyweight Emaar Properties, the largest developer in the emirate, fell 2.5 percent, weighing on the index. 

Dubai’s telecom operator Du (Emirates Integrated Telecommunications Co) shed 0.4 percent, reversing earlier gains, after it said the UAE sovereign wealth fund Emirates Investment Authority had increased its stake by buying 463.3 million shares from Mamoura Diversified Global Holding and General Investments. 

In Abu Dhabi, blue chip companies Aldar Properties, First Abu Dhabi Bank and Abu Dhabi National Oil Company for Distribution, led losses, dragging down the main index. The other Gulf markets were all in the red, except for the Bahrain index, which rose slightly. 

In Egypt, the index gained 0.2 percent, boosted by a 4.5 percent gain by Pioneers Holding Company for Financial Investments. The company said one of its divisions, Arab Dairy Products, had received a letter of intent from a Netherlands based company about a plan to buy it.


Yemen’s Safer oil company resumes pumping to Arabian Sea terminal

Updated 16 October 2019

Yemen’s Safer oil company resumes pumping to Arabian Sea terminal

  • Yemen’s oil output has collapsed since after the Iran-backed Houthi militia overthrew the internationally recognized government
  • Yemen produced an average of 50,000 bpd of crude in 2018 compared with around 127,000 bpd in 2014

DUBAI: Yemen’s Safer oil company resumed pumping oil from its fields in Shabwa in southern Yemen to a terminal on the Arabian sea for export abroad, a company official told Reuters on Wednesday.
Safer, owned by the internationally recognized government of Yemen, is currently pumping at a rate of 5,000 barrels per day and expects to ramp up pipeline throughput to 15,000 barrels per day, the official said.
Yemen’s oil output has collapsed since after the Iran-backed Houthi militia overthrew the internationally recognized government of Abd-Rabbu Mansour Hadi in Sanaa.
Hadi’s government controls the oil-producing provinces of Shabwa and Hadramout, while the Houthi group controls the capital Sanaa and the oil terminal of Ras Issa on the Red Sea coast.
Yemen produced an average of 50,000 bpd of crude in 2018 compared with around 127,000 bpd in 2014. Last year it exported some quantities of oil.
Safer’s official said the company will use tankers to ship the crude from Iyad field (Block 4) to the Arabian Sea pipeline in Shabwa to avoid the Ras Issa terminal.

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