Business
Gulf markets slip as Middle East tensions keep investors cautious
Gulf markets slip as Middle East tensions keep investors cautious
About this update from Al Rajhi Bank
By Ateeq Shariff Most Gulf equities ended lower on Thursday as investors remained cautious over fast-moving developments in the Middle East, and Iran said it was reviewing a U.S. proposal to end the conflict.President Donald Trump said Iran was eager to strike a deal, while Iranian Foreign Minister Abbas Araqchi said there had been no direct dialogue or negotiations with the U.S., although messages had been exchanged through intermediaries.Conflicting messages from both sides over ceasefire talks have kept investors on edge. Dubai's main share index DFM:DFMGI - which jumped more than 4% in the previous session - slid 3.2%, with Emaar Properties DFM:EMAAR retreating 4.7% and top lender Emirates NBD DFM:EMIRATESNBD tumbling 5%.In Abu Dhabi, the index (.FTAFDGI) dropped 1.8%, hit by a 2.6% fall in Aldar Properties ADX:ALDAR.GCC equity markets experienced pressure amid intensifying geopolitical risks, which continued to weigh on investor sentiment and reinforce caution across the region, Milad Azar market analyst at XTB MENA.The unclear outlook for ongoing diplomatic efforts generated mixed market behavior, while evolving expectations sustained near-term volatility, Azar added.The Qatari index QSE:GNRI declined 1.3%, weighed down by a 1.2% fall in Qatar Islamic Bank QSE:QIBK and a 4.1% slide in Qatar Gas Transport QSE:QGTS. According to Azar, GCC markets will remain vulnerable to geopolitical shifts, but diplomatic progress and strong macro fundamentals could support a rebound.Saudi Arabia's benchmark index TADAWUL:TASI reversed early losses to finish 0.1% higher, helped by a 1.6% gain in petrochemical maker Saudi Basic Industries Corp TADAWUL:2010 and a 0.5% increase in oil behemoth Saudi Aramco TADAWUL:2222.Oil rose more than 3%, rebounding from the previous session's losses, as prospects for a prolonged conflict in the Middle East stoked concerns over further supply disruptions.The near-month-long war, sparked by joint U.S.-Israeli strikes on Iran, has effectively brought about a closure of the Strait of Hormuz, a key route for global oil and liquefied natural gas flow.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 lost 0.9%.Saudi ArabiaTADAWUL:TASI added 0.1% to 11,090Abu DhabiADX:FADGI dropped 1.8% to 9,602DubaiDFM:DFMGI declined 3.2% to 5,518QatarQSE:GNRI was down 1.3% to 10,290EgyptEGX:EGX30 retreated 1% to 47,002 BahrainBAHRAIN:BHBX concluded fla...