Stock markets in the Gulf ended lower on Thursday as markets weighed the risk of a widening conflict in the region, with the Dubai index falling for a fifth consecutive session.
Israel’s military on Thursday urged residents of over 20 towns in south Lebanon to evacuate their homes immediately, as it pressed on with an incursion after suffering its worst losses in a year of fighting Iran-backed armed group Hezbollah.
As it pushes into south Lebanon, Israel is also weighing its options for retaliation against Iran.
The Islamic Republic launched its largest ever assault on Israel on Tuesday, in what it said was retaliation for Israel’s assassination of senior Hamas and Hezbollah leaders and its operations in Gaza and Lebanon.
Saudi Arabia’s benchmark index dropped 0.7%, with aluminium products manufacturer Al Taiseer Group losing 0.9% and Al Rajhi Bank falling 0.9%.
The Saudi index registered its biggest weekly loss of 3.4% since May.
Dubai’s main share index retreated 1%, weighed by a 2.3% fall in blue-chip developer Emaar Properties.
Most Gulf markets retreat on heightened regional tensions
Among other losers, budget airliner Air Arabia slid 2.9%.
In Abu Dhabi, the index declined 1%.
On the other hand, oil prices – a catalyst for the Gulf’s financial markets – rose on investor concern that a widening Middle East conflict could disrupt crude oil flows from the region, though a stronger global supply outlook kept a lid on gains.
The Qatari benchmark also fell 1%, with telecoms firm Ooredoo losing 4%.
Outside the Gulf, Egypt’s blue-chip index advanced 1.2%, as most of its constituents were in positive territory.
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SAUDI ARABIA fell 0.7% to 11,958
ABU DHABI dropped 1% to 9,214
DUBAI declined 1% to 4,398
QATAR retreated 1% to 10,466
EGYPT rose 1.2% to 31,720
BAHRAIN fell 0.1% to 2,006
OMAN eased 0.1% to 4,674
KUWAIT was down 0.6% to 7,583
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