Most stock markets in the Gulf ended higher on Tuesday ahead of talks between U.S. President Donald Trump and Russian President Vladimir Putin aimed at ending Russia’s war with Ukraine, while tensions in the region dampened investor sentiment.
Trump said he would speak with Putin to discuss a potential Russia-Ukraine cease-fire proposal, which could alleviate some geopolitical uncertainty.
Saudi Arabia’s benchmark index dropped 0.8%, dragged down by a 1.4% fall in Saudi Aramco as the oil behemoth traded ex-dividend.
Israeli air strikes on Gaza killed more than 300 people, Palestinian health authorities said, threatening a complete collapse of a two-month ceasefire as Israel vowed to use force to free its remaining hostages in the enclave.
Meanwhile, Trump has vowed to continue the U.S. assault on Yemen’s Houthis unless they end their attacks on ships in the Red Sea.
Despite oil prices rebounding due to heightened geopolitical tensions in the region, these same tensions negatively impacted market sentiment, said Hassan Fawaz, Chairman and Founder of GivTrade.
“These factors could continue to influence the market’s general performance.”
Dubai’s main share index lost 0.4%, with blue-chip developer Emaar Properties losing 1.1% and toll operator Salik down 1.2%.
Most Gulf markets in red on regional tensions
In Abu Dhabi, the index nudged 0.1% higher.
Oil prices rose more than 1% to their highest since the beginning of the month, supported by instability in the Middle East and China’s plans for more economic stimulus.
The Qatari index finished 0.6% higher, led by a 4.2% rise in Qatar Gas Transport.
Outside the Gulf, Egypt’s blue-chip index gained 0.5%, with Talaat Moustafa Group increasing 1.1%.
---------------------------------------- SAUDI ARABIA fell 0.8% to 11,792 Abu Dhabi rose 0.1% to 9,463 Dubai dropped 0.4% to 5,149 QATAR gained 0.6% to 10,461 EGYPT added 0.5% to 31,609 BAHRAIN was up 0.1% at 1,970 OMAN lost 0.4% to 4,362 KUWAIT rose 0.5% to 8,470 ----------------------------------------
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