Gulf bourses end lower on Iran jitters | Reuters

Gulf bourses end lower on Iran jitters | Reuters

Stock markets in the Gulf closed down on Thursday, as fears of a possible U.S. military action against Iran raised concerns that the region would bear the brunt of any Iranian retaliation.

The deployment of a U.S. aircraft carrier and supporting warships to the Middle East this week has broadened U.S. President Donald Trump's options for potential military action, following his repeated threats to intervene over Iran's crackdown.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.7%, ending a five-day winning streak, hit by a 1.3% fall in Al Rajhi Bank (1120.SE), opens new tab and a 2.6% slide in ACWA Power (2082.SE), opens new tab.

Oil behemoth Saudi Aramco (2222.SE), opens new tab, however, gained 0.6%.

 

Crude prices, a catalyst for the Gulf's financial markets, hit a four-month high as Trump warned Iran of possible attacks if it did not make a deal on nuclear weapons.

Most sectors were lower on the day, but the losses were contained by energy, with Aramco supported by rising oil prices, said Milad Azar, market analyst at XTB MENA.

According to Azar, sentiment remains underpinned by fourth-quarter earnings and optimism ahead of next week's opening of the market to foreign investors, leaving room for further gains on strong results, firmer oil, and solid non-oil fundamentals.

Bank AlJazira (1020.SE), opens new tab advanced 4.2%, its biggest intraday gain in four months, after posting a strong increase in annual net profit and proposing a 0.50 riyal-per-share cash dividend for the second half — its first in three and a half years.

In mid-January, Saudi Arabia, Qatar, Oman and Egypt urged Washington not to carry out a strike on Iran.

Dubai's main share index (.DFMGI), opens new tab retreated 0.5%, weighed down by a 1.4% fall in toll operator Salik (SALIK.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.3%, with Abu Dhabi Commercial Bank (ADCB.AD), opens new tab falling 1.7%. After market hours, the lender reported a fourth-quarter net profit of 3.34 billion dirhams ($909.41 million), up from 2.57 billion dirhams a year ago.

The UAE said on Monday it would not allow its airspace, territory, or waters to be used for hostile military action against Iran, reaffirming its neutrality and commitment to regional stability.

The Qatari index (.QSI), opens new tab finished 0.6% lower, with Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender by assets, sliding 1.3%.

The Egyptian bourse was closed for a public holiday.