Stocks Sink Across Mideast as Israel Goes to War With Hamas - Bloomberg
The fallout from Saturday’s surprise attack on Israel by the Palestinian group Hamas reverberated through Middle East markets, sending stocks sliding and setting the tone for what’s likely to be a volatile week.
Major equities gauges in the region fell Sunday, led by a 6.4% drop on Israel’s benchmark TA-35 stock index, its biggest loss in more than three years. The Tadawul All Share Index in Riyadh fell 1.6% while stocks in Qatar and Kuwait also weakened. The EGX30 gauge in Cairo slumped 2.6% after an Egyptian policeman opened fire on a group of Israeli tourists, killing two of them, in the Mediterranean city of Alexandria.
The Hamas assaults mark the deadliest attack on Israel in decades and threaten to escalate into a broader conflict. Israeli Prime Minister Benjamin Netanyahu declared that his country would launch a prolonged military campaign against the militant group and expressed confidence Israel would win. President Joe Biden pledged “rock solid” US support for Israel.
The conflict comes at a time of diplomatic sensitivity and also a moment of historic division within Israel over Netanyahu’s coalition with Israel’s far-right and their efforts to overhaul the nation’s judiciary. The Israeli shekel has slumped toward a seven-year low in recent days, ahead of the scheduled reopening of Israel’s parliament later this month.
Major Gulf bourses drop amid surging Gaza-Israel conflict | Reuters
Major stock markets in the Gulf tumbled on Sunday amid worries that rising conflict between Palestinian group Hamas and Israel threatens to spiral.
Israel pounded Gaza on Sunday after suffering its bloodiest attack in decades when Hamas fighters rampaged through Israeli towns a day earlier, threatening a major new war in the Middle East.
Saudi Arabia's benchmark index (.TASI) slumped 1.6%, the sharpest decline in 10 months.
The index was dragged down by losses in all sectors, with Lumi Rental (4262.SE) down 5% and Etihad Atheeb Telecommunication (7040.SE) dropping 5.3%.
Saudi Aramco Base Oil (2223.SE) (Luberef)dropped 6.8% and the world's largest Islamic bank by assets, Al Rajhi Bank(1120.SE) slipped 2.1%.
The Qatari index (.QSI) fell for a third straight session, ending 0.6% lower, with most sectors in the red.
Industries Qatar (IQCD.QA) dropped 1.1% and Commercial Bank (COMB.QA) lost 1.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) plunged 2.6%, the steepest drop in nearly three months.
The index was weighed down by losses in all sectors with Commercial International Bank (COMI.CA) falling 2.7% and E-Finance For Digital And Financial Investments (EFIH.CA) sliding 4.8%.
Among the losers, Telecom Egypt (ETEL.CA) and Fawry Banking (FWRY.CA) lost 4.2% and 4.7% respectively.
