Business
Most Gulf markets in black despite regional conflict
Most Gulf markets in black despite regional conflict
About this update from Al Rajhi Bank
By Ateeq Shariff Most stock markets in the Gulf ended higher on Monday amid rising oil prices, as investors anxiously waited to see if Iran would retaliate against U.S. attacks on its nuclear sites.Oil prices touched a five-month high before paring gains on Monday as oil and gas transit continued on tankers from the Middle East after U.S. airstrikes against Iran at the weekend.Market participants expect further price gains amid mounting fears that an Iranian retaliation may include closing the Strait of Hormuz, through which roughly a fifth of global crude supply flows.Saudi Arabia's benchmark index TADAWUL:TASI advanced 1.3%, buoyed by a 1.6% rise in Al Rajhi Bank TADAWUL:1120 and 1.5% increase in the country's biggest lender Saudi National Bank TADAWUL:1180.Investors downplayed the potential for further escalation in the regional military conflict. This sentiment follows the possibility of peace talks, though the probability of such discussions remains low. This upward movement could be temporary, as volatility and uncertainty persist, said Hani Abuagla Senior Market Analyst at XTB MENA."The situation could worsen if Iran closes the Strait of Hormuz, which would disrupt oil supplies and potentially lead to further military escalation."Dubai's main share index DFM:DFMGI climbed 1.1%, led by a 2.8% rise in blue-chip developer Emaar Properties DFM:EMAAR and a 1.8% increase in sharia-compliant lender Dubai Islamic Bank DFM:DIB.According to Abuagla, improved investor risk appetite returned to support the Dubai market. The focus has shifted back to the healthy economic fundamentals, which could foster further recovery if this trend continues.In Abu Dhabi, the index ADX:FADGI closed 0.5% higher.The Qatari index QSE:GNRI rose 0.5%, with petrochemical maker Industries Qatar QSE:IQCD gaining 0.8%.Gulf states, home to multiple U.S. military bases, were on high alert on Sunday, with their leaders calling on all parties to exercise maximum restraint following U.S. strikes on Iran that raised the possibility of a wider conflict.Nuclear authorities in Saudi Arabia and the UAE said they had not detected signs of nuclear contamination following the strikes in Iran.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 increased 1.2%, with investment bank EFG Holding Co EGX:HRHO jumping 7.2%.SAUDI ARABIATADAWUL:TASI rose 1.3% to 10,710Abu DhabiADX:FADGI up 0.5% to 9,558Duba...