MIDEAST STOCKS-Gulf equities mixed as Saudi energy, shipping security concerns weigh

By Ateeq Shariff

Sept 14 (Reuters) - 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 .TASI reversed early losses to edge 0.1% higher, with Al Rajhi Bank 1120.SE rising 1.8%.

Arabian Drilling 2381.SE gained 3%, after securing a five-year gas-drilling contract worth about 2 billion riyals ($532.5 million).

However, oil major Saudi Aramco 2222.SE lost 0.2%, while Saudi Arabian Mining Company 1211.SE and Saudi Basic Industries Corp 2010.SE declined 1.5% and 1.9%, respectively.

Elsewhere, Riyadh Cement 3092.SE 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 .QSI 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 .DFMGI gained 0.5%, led by a 6.4% jump in blue-chip developer Emaar Properties EMAR.DU.

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

In Abu Dhabi, the index .FTFADGI was up 0.1%, helped by a 6.5% jump in Space42 SPACE42.AD 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 .EGX30 retreated 1.6%.

($1 = 3.7556 riyals)