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 dropped 1.7%, weighed down by a 4% decline in aluminium products manufacturer Al Taiseer Group and a 2.9% decrease in Al Rajhi Bank.
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 dropped 0.8%, hit by a 1.7% fall in blue-chip developer Emaar Properties.
Most Gulf markets end lower on rising tensions in the region
Among other losers, budget airline Air Arabia 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 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 lost 1.7% with most of its constituents in negative territory, including Talaat Mostafa Holding, which was down 3.5%.
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SAUDI ARABIA slid 1.7% to 12,044
ABU DHABI fell 1.1% to 9,307
DUBAI dropped 0.8% to 4,440
QATAR declined 0.6% to 10,566
EGYPT down 1.7% to 31,333
BAHRAIN closed flat at 2,008
OMAN lost 0.4% to 4,678
KUWAIT down 1.2% to 7,630
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