MIDEAST STOCKS-Gulf banks could attract interest after results, Egypt may wobble

RIYADH, Oct 25 (Reuters) - Some banking shares in the Gulf may attract buying interest on Tuesday after quarterly earnings came in line with expectations, while concern about Egypt’s dollar shortage may continue to weigh on that market.

Riyadh’s index posted its fourth straight session of gains on Monday after the country successfully conducted a massive international bond sale that will help to ease liquidity concerns, at least temporarily.

Many analysts believe unusually modest valuations by local standards mean there is still further upside for many shares in Saudi Arabia, which has been underperforming its peers year-to-date.

Elsewhere, Abu Dhabi Islamic Bank (ADIB) may attract interest after it reported nearly flat third-quarter net profit on Monday. Profit came in at 508.9 million dirhams ($139 million), up 1.1 percent from a year ago; EFG Hermes had forecast 494.5 million dirhams.

But ADIB booked credit provisions and impairment charges totalling 267.7 million dirhams in the third quarter, compared to 193.0 million dirhams in the year-ago period.

In Doha, Qatar International Islamic Bank may be bid up after it reported a 2.2 percent rise in third-quarter net profit to 223.3 million riyals ($61.3 million); QNB Financial Services had forecast 221.8 million riyals.

In Egypt, Finance Minister Amr El Garhy said the government would issue roughly $2 billion of international bonds, less than the previously announced $3 billion to $5 billion, and would begin a roadshow for the planned offering in the second or third week of November.

Equity investors may be concerned by the lower number as the chronic dollar shortage cripples the economy. Edita Food Industries said on Monday that one of its subsidiaries had temporarily shut a factory after the government seized its store of sugar; later in the day, the prime minister announced the government had seized 9,000 tonnes of sugar in raids on factories and warehouses to deal with a shortage of the commodity. (Reporting by Celine Aswad; Editing by Andrew Torchia)