MIDEAST STOCKS-Saudi stocks extend fall as energy attacks rattle sentiment

By Reuters News

- Saudi Arabian stocks fell on Monday, extending the previous session's sharp losses as escalating attacks on the kingdom's energy infrastructure and shipping routes unsettled investors, though some other major Gulf stock markets edged higher.

Saudi Arabia's benchmark index .TASI slipped 0.3%, with oil major Saudi Aramco 2222.SE falling 0.5% and Saudi Arabian Mining Company 1211.SE and Saudi Basic Industries Corp 2010.SE declining 1% and 0.5%, respectively.

Elsewhere, Riyadh Cement 3092.SE plunged 5.8%, on course to be the top loser on the index, after trading ex-dividend.

Arabian Drilling 2381.SE gained 2.2% however after securing a five-year gas-drilling contract worth about 2 billion riyals ($532.5 million).

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 edged 0.1% lower.

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 0.4%, helped by a 3.1% rise in blue-chip developer Emaar Properties EMAR.DU.

In Abu Dhabi, the index gained 0.4%, led by a 10% 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.

Space42 was on track for its largest single-day advance since July 4 last year.

($1 = 3.7556 riyals)

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