Gulf equities mixed as Saudi energy, shipping security concerns weigh

Gulf stock markets were mixed on Monday as investors weighed escalating attacks on Saudi Arabia’s energy infrastructure and key shipping routes.

Saudi Arabia’s benchmark index reversed early losses to edge 0.1% higher, with Al Rajhi Bank rising 1.8%.

Arabian Drilling gained 3%, after securing a five-year gas-drilling contract worth about 2 billion riyals ($532.5 million).

However, oil major Saudi Aramco lost 0.2%, while Saudi Arabian Mining Company and Saudi Basic Industries Corp declined 1.5% and 1.9%, respectively.

Elsewhere, Riyadh Cement plunged 4.9%, becoming the top loser on the index, after trading ex-dividend.

Risk sentiment was pressured after a drone strike temporarily shut Saudi Arabia’s East-West oil pipeline, a key route that bypasses the Strait of Hormuz and carries up to 4% of global oil supply.

Sources said Yanbu port inventories could support exports for only five to seven days if the disruption continues.

Tensions also mounted following reported Houthi strikes in southern Saudi Arabia and fresh attacks on vessels near the Strait of Hormuz.

Separately, Saudi Arabia requested the postponement of a planned Oman meeting between Iran and Gulf states, Iran’s foreign ministry said.

The Qatari benchmark dropped 0.3%.

Saudi state media released footage on Sunday showing damage to homes and a mosque in Jazan province, blaming a Houthi attack. The Houthis also said they had targeted a Saudi military base in a neighbouring region.

Maritime security concerns intensified after a vessel in the Strait of Hormuz was hit by a projectile, sparking a fire and prompting the crew to abandon ship, according to the UK Maritime Trade Operations agency.

Dubai’s main share index gained 0.5%, led by a 6.4% jump in blue-chip developer Emaar Properties .

Emaar announced that its board will meet on Wednesday to discuss enhancing shareholder returns and capital allocation.

In Abu Dhabi, the index was up 0.1%, helped by a 6.5% jump in Space42 after the firm and California-based Viasat agreed to establish Equatys, a direct-to-device satellite communications platform, committing up to $1 billion to the venture.

Outside the Gulf, Egypt’s blue-chip index retreated 1.6%.