Saudi stocks continue to fall after energy attacks shock sentiment

Saudi Arabian stock prices fell again on Monday as investors were unnerved by the escalating attacks against the kingdom's shipping routes and energy infrastructure. However, some major Gulf markets edged up.

Saudi Arabia's benchmark index fell 0.3%. Oil?major Saudi Aramco dropped 0.5%. Saudi Arabian Mining Company, Saudi Basic Industries Corp and Saudi Arabian Mining Company both declined 1% and 0.5% respectively.

Riyadh Cement, which had traded ex-dividend, plunged by 5.8% and is on track to be the worst performer on the index.

Arabian Drilling however gained 2.2% after it secured a 5-year contract for?gas drilling worth around 2 billion riyals (532.5 million dollars).

A drone strike temporarily "shut down" Saudi Arabia's East West oil pipeline. This is a vital route that bypasses Strait of Hormuz and carries 4% of the global oil supply.

If the disruption persists, Yanbu port inventories are only expected to support exports between five and seven days.

Tensions have also risen following reports of?Houthi attacks in southern Saudi?Arabia, and new attacks on vessels near Strait of Hormuz.

Iran's Foreign Ministry said that Saudi Arabia had also requested the postponement a meeting planned between Iran and Gulf States in Oman.

The benchmark Qatari index edged down by 0.1%.

Saudi state media released footage of damage to homes and mosques in Jazan province on Sunday, blaming an attack by the Houthis. The Houthis said that they also targeted a Saudi base in the neighbouring area.

Maritime'security concerns' increased after a vessel was 'hit by a scud projectile in the Strait of Hormuz, causing a fire, and forcing the crew to abandon the ship, according the UK Maritime Trade Operations Agency.

Dubai's main share index rose 0.4% thanks to a 3.1% increase in blue-chip developer Emaar Properties.

In Abu Dhabi the index rose 0.4%. This was mainly due to a 10% increase in Space42, after Space42 and California-based Viasat announced their agreement to create Equatys - a direct-to-device communications platform - by investing up to $1 billion.

Space42 is on course to make its biggest single-day gain since July 4, last year.

(source: Reuters)