STC weighs on the Saudi stock market; Dubai expands its earnings

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Dec. 12 (Reuters) – The Saudi stock market fell early on Sunday, weighed down by a sharp drop from Saudi Telecom Company (STC) after a secondary stock offering.

The benchmark index (.TASI) fell 0.5%, dragged down by a 4.4% drop in Saudi Telecom Company (7010.SE).

The Saudi Sovereign Fund Public Investment Fund (PIF) set the final price for the sale of 120 million shares of STC at 100 riyals per share, at the bottom of an earlier price range of 100 riyals to 116 riyals per share, according to a stock market announcement by one of the leaders of the operation. Read more

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PIF is set to raise 12 billion riyals ($ 3.2 billion) from the sale of a 6% stake in STC after pricing the deal in a secondary stock offering.

In Dubai, the main stock index (.DFMGI) gained 0.2%, supported by a 0.6% increase from the sharia-compliant lender Dubai Islamic Bank (DISB.DU).

Dubai Vice President and Finance Minister Sheikh Maktoum Bin Mohammed announced the listing of Emirates Central Cooling Systems Corporation (Empower), the emirate’s media office reported on Saturday. Read more

The government has announced plans to list Empower among 10 state-backed companies that will be listed as part of efforts to boost activity on the local stock exchange.

The listings aim to make Dubai a more competitive market compared to the region’s largest stock exchanges, such as those in Saudi Arabia and neighboring Abu Dhabi, which achieve higher listings and high liquidity.

The Abu Dhabi index (.ADI), meanwhile, gained 0.7%, to slam three sessions of losses, led by a 2% increase in telecommunications company Etisalat (ETISALAT.AD).

The Qatari index (.QSI) fell 0.1%, penalized by a drop of 1.2% for Commercial Bank (COMB.QA).

($ 1 = 3.7513 riyals)

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Reporting by Ateeq Shariff in Bengaluru Editing by David Goodman

Our Standards: Thomson Reuters Trust Principles.

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