Gulf markets end mixed on uncertainty over Doha talks

Most Gulf stock markets ended lower on Tuesday on doubts over whether U.S.-Iran talks in Doha will make any progress to end the four-month-old war.

US envoys in Doha will not hold a high-level meeting with Iran, a Qatari official said, adding there will be technical talks this week on issues including regional security that could be elevated to senior level.

Iran had said on Monday that no meeting had been planned as weekend missile exchanges tested an interim ceasefire. It said its technical delegation’s visit to Qatar was unrelated to the Americans’ trip and that no talks were scheduled.

Saudi Arabia’s benchmark stock index edged 0.1% up on Tuesday, with shares in ACWA Power gaining 2.8%.

Dubai’s main share index dropped 0.6%, with top lender Emirates NBD (ENBD) retreating 1.8% on reports it is considering acquiring HSBC’s Turkish unit.

ENBD shares may stay under pressure in the near term as investors price in capital, integration, and execution risks tied to another potentially large overseas deal so soon after its bid for a 26% stake in India’s RBL Bank, said Daniel Takieddine, CEO of Sky Links Capital Group.

According to Takieddine, in the longer run, a broader footprint across Turkey and South Asia could help diversify earnings, reduce reliance on the domestic market, and reinforce the bank’s long-term growth prospects.

In Abu Dhabi, the index fell 0.4%.

The Qatari index eased 0.1%, weighed down by a 2.2% fall in the Gulf’s biggest lender Qatar National Bank.

Outside the Gulf, Egypt’s blue-chip index advanced 1.3%, as most of its constituents were in positive territory.

The International Monetary Fund said on Monday it had reached a staff-level agreement with Egypt on two programme reviews, potentially unlocking about $1.6 billion subject to executive board approval.