By Amna Mariyam
Gulf stock markets were mixed on Wednesday, with Saudi Arabia extending its fall on fiscal concerns, as market participants awaited a third round of U.S.-Iran nuclear talks scheduled for Thursday.
Saudi Arabia's benchmark stock index TADAWUL:TASI slipped 0.5%, deepening its losses as the kingdom's budget deficit widened quarter-on-quarter due to higher expenditures.
Losses were broad-based, with financial stocks leading the decline, including a 0.7% descent in Al Rajhi Bank TADAWUL:1120, the world's largest Islamic lender, and a 0.8% drop in Saudi National Bank TADAWUL:1180, the country's largest lender by assets.
In contrast, Power and Water Utility Co MARAFIQ TADAWUL:2083 soared 8.4%, marking its strongest daily performance in nearly five months after reporting a staggering 2,520.58% jump in its full-year profits.
Energy giant Saudi Aramco TADAWUL:2222 dipped 0.4%.
Reuters reported earlier this week, citing trade sources, that Aramco had sold several shipments of ultra-light crude oil from its $100 billion Jafurah gas plant to U.S. majors and an Indian refiner, ahead of its first export later this month.
Although external pressures are weighing on most Gulf markets, underlying fundamentals remain strong, indicating potential for a rebound once geopolitical tensions ease, said Milad Azar, market analyst at XTB MENA.
and Iran.
Dubai's main stock index DFM:DFMGI added 0.1%, supported by a recovery in banking stocks.
Emirates NBD Bank DFM:EMIRATESNBD advanced 1.3%, rebounding from its steepest single-day decline in nearly three months in the previous session, while district cooling services provider EMPOWER DFM:EMPOWER gained 1.7%.
Abu Dhabi's benchmark index ADX:FADGI closed flat in a volatile session, as uncertainty and cautious sentiment stalled recent gains. Aldar Properties ADX:ALDAR declined 0.7%, while Abu Dhabi Commercial Bank ADX:ADCB rose 1.3%.
Emirates Telecommunications' ADX:EAND shares fell 0.6%, snapping a three-day rally as optimism surrounding a CEO change and dividend announcement was tempered by profit-taking and uncertainty over the company's direction under new leadership.
Qatar's stock index QSE:GNRI eased 0.2%, pressured by weakness in banking stocks. Telecommunications firm Ooredoo QSE:ORDS fell 1.5%, while Qatar National Bank QSE:QNBK slipped 0.2%.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 trimmed early losses but still closed 2.7% lower, continuing a volatile trend of sharp losses and recoveries in recent sessions.
All sectors ended in negative territory, with Commercial International Bank EGX:COMI, the country's largest private lender, and real estate developer Talaat Moustafa Group EGX:TMGH both losing 4%.
The Kuwait Bourse (.BKP) was closed on account of National Day and Liberation Day.
Saudi Arabia
.TASI slipped 0.5% to 10,848
Abu Dhabi
.FTFADGI was flat at 10,638
Dubai
.DFMGI added 0.1% to 6,676
Qatar
.QSI shed 0.2% to 11,271
Egypt
.EGX30 dropped 2.7% to 49,014
Bahrain
.BAX finished flat at 2,059
Oman
.MSX30 climbed 1.3% to 7,388