MIDEAST STOCKS – The incident of an oil tanker weighs on Saudi Arabia and makes a profit overnight in Kuwait

                * Oil tanker tensions in the Gulf weigh on sentiment
* Banks pull down the Indian index
* Profit-taking is detrimental to Kuwait's index
* Dubai slips on ownership shares
* Heavyweight FAB raises Abu Dhabi

By Tuqa Khalid
DUBAI, July 21 (Reuters) - Saudi Arabia stock index
declined Sunday as political concerns weighed on
investors after Iran seizes a British flag oil tanker
the gulf.
Britain has called the action of Iran against Stena Impero in the
The Strait of Ormuz Friday is a "hostile act".
"Markets follow negative global trend
Geopolitical risks at the heart of the British oil company's concerns
seizure, "said Vrajesh Bhandari, senior portfolio manager at Al
Mal Capital in Dubai.
Saudi shares fell 0.8% and financial stocks fell sharply
losses in the face of an expected reduction in interest rates this month from
US Federal Reserve.
The Saudi Arabian Bank (SABB) lost 2.2%, the Arab currency
National Bank down 1.7%, National Bank of Commerce
down 1.1% and the Saudi Investment Bank
down 0.6%.
The other Gulf markets were mixed.
In Kuwait, profit-taking lowered the index by 1.2%.
"Kuwait is the best performing market in the MENA region this year so far,
almost 20%, so it is not surprising that some investors
take profits, "said Bhandari.
"We believe the market will continue to be well supported
(up to its) ... inclusion in the MSCI EM index in mid-2020. "
Ahli United Bank down 2.5%, Kuwait Finance
House was down 1.4%, and Kuwait International Bank
was down 1.1%.
In Dubai, the index was down 0.9%, driven down by
the real estate sector. The Arabtec construction company has lost
2.3%, DAMAC 2% properties and Emaar development
1.6%.
Dubai is in a housing crisis that has seen prices fall
more than a quarter compared to a peak in mid-2014, which hurt earnings
leading developers of the emirate and forcing the construction and
engineering firms to cut jobs and put an end to expansion projects.
In Abu Dhabi, the index climbed 0.3%,
First Abu Dhabi Bank heavyweight, up 1%.
The lender, the largest in the UAE, rose 4% last week after
up 5% in net income in the second quarter.
FAB boosted the sector, with Abu Dhabi Islamic Bank
and Abu Dhabi Commercial Bank up 0.8%
and 0.6% respectively.
The safe value index of Egypt lost 0.7%, weighed down by
immovable. Cairo Investment and real estate development
tumble 4.2% and Orascom Development down
2.9%.

SAUDI ARABIA The index fell 0.8% to 8,958 points
ABU DHABI The index gained 5.235 points to 0.335 points
DUBAI The index lost 0.9% to 2.739 points
QATAR The index was at 10,501 points
EGYPT The index is down 0.7% to 13,576
points
BAHRAIN's index slipped 0.2% to 1,534 points
OMAN's index rose 0.6% to 3,771 points
KUWAIT The index fell 1.2% to 6.664 points

(1 $ = 3.6728 dirham from the United Arab Emirates)

(Report by Tuqa Khalid, edited by Davide Barbuscia and John
Stonestreet)