Business
Gulf markets mixed amid geopolitical worries, profit-taking
Gulf markets mixed amid geopolitical worries, profit-taking
About this update from Al Rajhi Bank
By Ateeq Shariff Gulf stock markets closed mixed on Thursday, as investor sentiment was weighed down by uncertainty surrounding the evolving regional geopolitical situation and profit-taking.The United States is pulling some personnel out of military bases in the Middle East, a U.S. official said Wednesday. That came after a senior Iranian official said Tehran had warned neighboring countries it would target U.S. bases if Washington launches strikes.Saudi Arabia's benchmark index TADAWUL:TASI dropped 1.2%, snapping a six-day winning streak, with Al Rajhi Bank TADAWUL:1120 losing 1.6%.However, broadened foreign participation rules triggered the recent rebound, additional market reforms could translate into increased foreign inflows, while new state-owned firms' IPOs could draw new investments, said George Pavel, general manager at Naga.com Middle East.Among other losers, oil behemoth Saudi Aramco TADAWUL:2222 eased 0.7%.Oil prices, a catalyst for the Gulf's financial markets, tumbled more than 3% after U.S. President Donald Trump said killings of demonstrators during protests in Iran were ending, easing concerns over military action against Iran and potential oil supply disruptions.The Qatari index QSE:GNRI declined 1.3%, hit by a 2% fall in Qatar Islamic Bank QSE:QIBK.Dubai's main share index DFM:DFMGI finished flat, while the Abu Dhabi index ADX:FADGI was up 0.2%.According to Pavel, the earnings season has the potential to reinforce the positive fundamental narrative, but its impact is constrained to a certain extent by the trajectory of oil prices and the regional geopolitical risk.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 gained 0.7%, with Commercial International Bank EGX:COMI advancing 3.4%.Saudi ArabiaTADAWUL:TASI dropped 1.2% to 10,818Abu DhabiADX:FADGI added 0.2% to 10,057DubaiDFM:DFMGI was flat at 6,262QatarQSE:GNRI declined 1.3% to 11,068EgyptEGX:EGX30 gained 0.7% to 43,347BahrainBAHRAIN:BHBX closed flat at 2,045Oman(.MSX30) rose 0.7% to 6,224Kuwait(.BKP) lost 0.7% to 9,352