Wednesday 2 October 2024

Most Gulf markets retreat on heightened regional tensions | Reuters

Most Gulf markets retreat on heightened regional tensions | Reuters


Most stock markets in the Gulf ended lower on Wednesday after Iran's ballistic missile strike on Israel stoked fears of a wider regional conflict, with the Saudi index falling the most.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 1.7%, weighed down by a 4% decline in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 2.9% decrease in Al Rajhi Bank (1120.SE), opens new tab.

Hezbollah said its fighters were engaging Israeli forces inside Lebanon on Wednesday, reporting ground clashes for the first time since Israel began pushing into its northern neighbour in a campaign to hammer the Iran-backed armed group.

The Israeli military said regular infantry and armoured units were joining its ground operations in Lebanon, a day after Israel was attacked by Iran in a strike that raised fears the oil-producing Middle East could be engulfed in a wider conflict.

An Israeli team commander was killed in Lebanon, the Israeli military said.

Dubai's main share index (.DFMGI), opens new tab dropped 0.8%, hit by a 1.7% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab. Among other losers, budget airline Air Arabia (AIRA.DU), opens new tab was down 0.7%.

According to George Pavel, general manager at Capex.com, the market may continue its downward trajectory if current conditions persist.

In Abu Dhabi, the index (.FTFADGI), opens new tab retreated 1.1%.

On the other hand, oil prices - a catalyst for the Gulf's financial markets - climbed more than 3% as Israel and the U.S. vowed retribution over Iran's biggest ever direct attack on its regional adversary, firing more than 180 ballistic missiles.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 1.7% with most of its constituents in negative territory, including Talaat Mostafa Holding (TMGH.CA), opens new tab, which was down 3.5%.

No comments:

Post a Comment