Gulf shares slide after US and Iran exchange strikes

BENGALURU: Gulf stock markets fell on Wednesday after the US and Iran exchanged strikes overnight, dimming hopes for a swift easing of tensions in the Middle East.

Iran and its Arab neighbours were drawn back into conflict after US forces struck Iran’s southern coast and Tehran fired at American bases across the region, in the largest exchange of fire between Washington and Tehran since July.

Qatar’s benchmark dropped 1 percent, with nearly all stocks trading lower. Industries Qatar fell 1.5 percent, while Qatar National Bank, the region’s largest lender, lost 1.4 percent.

Saudi Arabia’s benchmark index declined 0.8 percent, led by information technology, communications and healthcare shares. Saudi National Bank, the kingdom’s largest lender by assets, fell 1.6 percent, while Dar Al Arkan Real Estate Development dropped 5.4 percent.

Abu Dhabi’s benchmark index fell 0.7 percent, weighed down by consumer discretionary, telecommunications and real estate stocks. ADNOC Gas lost 1.2 percent, while conglomerate Alpha Dhabi Holding declined 2.8 percent.

Dubai’s main index slipped 0.3 percent, with most constituents posting declines.

Outside the Gulf, Egypt’s blue-chip index rose 0.5 percent, supported by materials, industrial and consumer discretionary shares. Misr Fertilizers Production Company climbed 9 percent, while Abu Qir Fertilizers and Chemical Industries rose 6.8 percent.