Saudi Stocks Lead Gulf Gains After Aramco IPO Delayed: Inside EM

21 Oct 2019, 03:12 AM IST

(Bloomberg) -- Saudi Arabian stocks rose the most in the Gulf as the country’s oil giant delayed a long-awaited initial public offering, easing a sell-off of other stocks intended to fund purchases in the share sale.

The Tadawul All Share Index climbed as much as 2.3%, recovering from a loss of 0.8% last week and trimming losses in October to 3.8%. Large caps including National Commercial Bank, Al Rajhi Bank and Jabal Omar Development Co. contributed the most to the increase.

Saudi Aramco’s IPO, initially expected to be launched this week, was delayed by at least a few weeks to incorporate third-quarter results, according to people briefed on the situation. The postponement brought some relief to the market as many local investors had been selling asset holdings to divert into Aramco stock, analysts said.

The oil company said the timing of the IPO will depend on market conditions.

HIGHLIGHTS:
The MSCI Emerging Markets Index rose 1.2% in the five days through Oct. 18, and an index tracking currencies from developing countries climbed 0.3%
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MIDDLE EASTERN MARKETS:

The Tadawul All Share Index ends 2% higher, with 170 of its 191 members gaining
- MORE: Aramco IPO Hangs on Same Old Question: Is It Worth $2 Trillion?
- READ: Saudi Aramco to Cut Domestic Gasoline Prices for 4Q: SPA
Dubai’s DFM General Index and Abu Dhabi’s ADX General Index decline between 0.1% and 0.5%
- Du falls 1.6% in Dubai. Stock was cut to add from buy by Alphamena on Oct. 18
- Emirates NBD loses 1.2%, extends drop in the past two sessions to 4.9% after announcing last week details of a rights issue
Gauges in Kuwait and Qatar fall between 0.2% and 0.8%, while the benchmark in Oman rises 0.3%
- Ezdan Holding rises 2.4% in Doha, more than any other index member, after posting a 10% increase in net income between January and September
Companies in the region expected to release earnings this week include Emirates Telecommunications Group Company (Etisalat), Commercial Bank of Qatar QSC and Industries Qatar QSC

To contact the reporters on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net;Fahad Alzahrani in Dubai at falzahrani1@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Angela Cullen, James Amott