* Sabic surges after JV commences ethylene expansion project * Emirates NBD sees its biggest fall in nearly 8 months * Deyaar tumbles after reporting a fall in Q3 profit * Qatar's Baladna to raise 1.43 bln riyals in IPO By Shamsuddin Mohd Oct 17 (Reuters) - Saudi Arabian shares closed higher for a second straight session on Thursday as banks rallied, while Dubai was dragged down by its top lender Emirates NBD. Saudi's benchmark index rose 1.6%, with Al Rajhi Bank and Banque Saudi Fransi advancing 3.1%. and 6.6%, respectively. The world's fourth-biggest petrochemical firm, Saudi Basic Industries, soared 4% after its joint-venture with China's SINOPEC kicked off its ethylene expansion project on Oct. 14. In Dubai, the index fell 1.6%. Emirates NBD saw its worst session in nearly eight months and closed down 3.8%. The bank's board approved a capital increase via a rights issue of up to 6.45 billion dirhams ($1.76 billion), lower than 7.35 billion dirhams that the general assembly had decided in February this year. Deyaar Development shed 5.6% after the developer reported a sharp decline in its third-quarter profit compared with the same quarter a year earlier. Qatar's index slipped 0.1% as banking and energy stocks weighed. Qatar Fuel and Qatar Islamic Bank lost 1.3% and 0.7%, respectively. Separately, Qatari company Baladna, which has built a dairy business in the desert following a trade embargo by Saudi Arabia and its allies, will launch an initial public offering this month that could raise 1.43 billion riyals ($392.86 million). Meanwhile, Abu Dhabi's index reversed its course to close 0.1% higher, helped by a 1.4% rise in Aldar Properties . On Wednesday, the realtor's unit issued a $500 million sukuk, or Islamic bonds, and the transaction was six times oversubscribed. Egypt's blue-chip index traded flat with country's largest lender, Commercial International Bank, dropping 1%, while developer Madinet Nasr ended 6% higher. SAUDI ARABIA The index was up 1.6% at 7,636 ABU DHABI The index edged up 0.1% to 5,093 DUBAI The index was down 1.6% at 2,780 QATAR The index edged down 0.1% to 10,428 EGYPT The index was flat at 14,206 BAHRAIN The index was up 0.1% at 1,527 OMAN The index rose 0.1% to 4,005 KUWAIT The index was up 0.1% at 6,300 ($1 = 3.6400 Qatar riyals) (Reporting by Shamsuddin Mohd in Bengaluru; editing by Uttaresh.V)
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