Business
Most Gulf markets slip on US-Iran caution; Egypt jumps on rate cut
Most Gulf markets slip on US-Iran caution; Egypt jumps on rate cut
About this update from Al Rajhi Bank
By Ateeq Shariff Most Gulf stock markets ended lower on Sunday as investors grew cautious amid the possibility of rising regional tensions. The uncertainty dampened sentiment, leading some traders to pare back risk and reduce exposure to equities.The U.S. military is making preparations for the possibility of weeks-long operations against Iran if President Donald Trump orders an attack, Reuters reported on Saturday, citing two U.S. officials. Such an escalation could trigger a much more serious conflict than anything previously seen between the two countries.Iran is seeking a nuclear deal with the United States that would bring economic gains to both countries, an Iranian diplomat was reported to have said on Sunday, just days ahead of a second round of talks between Tehran and Washington.Saudi Arabia's benchmark index TADAWUL:TASI lost 0.2%, hit by a 0.5% fall in Al Rajhi Bank TADAWUL:1120 and a 0.9% decline in oil giant Saudi Aramco TADAWUL:2222.Gulf markets continue to look resilient, with the capacity for sustained growth. However, concerns regarding a regional conflict involving Iran, the United States, and Israel currently dominate the landscape, said Samer Hasn, Senior Market Analyst at XS.com. In Qatar, the index QSE:GNRI dropped 0.4%, with Qatar Islamic Bank QSE:QIBK losing 1.1%.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 advanced 3.6%, closing at an all-time high, as almost all its constituents were in positive territory after the most populous Arab country cut its interest rates by 100 basis points.Saudi ArabiaTADAWUL:TASI fell 0.2% to 11,229QatarQSE:GNRI was down 0.4% to 11,468EgyptEGX:EGX30 advanced 3.6% to 52,308BahrainBAHRAIN:BHBX eased 0.2% to 2,048Oman(.MSX30) dropped 0.7% to 7,129Kuwait(.BKP) lost 0.6% to 9,236