Most Gulf markets muted as Iran tensions keep investors wary

BENGALURU: Most Gulf stock markets closed subdued on Tuesday as investors remained cautious after the U.S. ruled out extending a temporary ceasefire agreement and an Iranian official said Tehran would shift to a “fully offensive” military posture.

Qatar’s benchmark index fell 0.5%, extending losses for a second consecutive session to close at 9,848 points, its lowest level in more than a year.

Qatar National Bank, the region’s largest lender, declined 0.7%, while telecommunications operator Ooredoo dropped 1.5%.

Saudi Arabia’s benchmark index ended flat, as gains in materials, energy and healthcare stocks offset declines elsewhere. Saudi National Bank, the kingdom’s largest lender by assets, slipped 0.5%, while Jarir Marketing fell 4.3%.

SABIC Agri-Nutrients Co gained 2.4%, while Saudi Arabian Mining Co rose 1.9% after the companies signed a memorandum of understanding to explore opportunities across the fertilisers and integrated agri-nutrients value chain.

Dubai’s benchmark index was little changed, with losses in communications, utilities and industrial shares offset by gains in other sectors. Emirates Integrated Telecommunications, known as du, fell 3.1%, while Emirates NBD rose 1.8%.

Abu Dhabi’s benchmark index rose 0.2%, extending its winning streak to a fifth consecutive session, with most sectors ending higher. Abu Dhabi Islamic Bank gained 1.1% and Emirates Telecommunications Group advanced 3.9%.

AD Ports extended gains, rising 2.9% after surging 14.9% in the previous session — its biggest one-day increase since September 2022.

Sovereign wealth fund L’IMAD, which owns a 75.42% stake in AD Ports through its wholly owned subsidiary ADQ, launched a voluntary conditional cash offerto buy the remaining shares at 6.25 dirhams apiece, the company said in a statement on Monday.

“UAE stock markets are more resilient than during previous periods of escalation, given the country’s ability to remain outside the eye of the storm in the Middle East conflict,” said Samer Hasn, senior market analyst at XS.com.

“We are no longer seeing direct targeting of the mainland, despite continued attacks on UAE-affiliated tankers from time to time,” he added.

Outside the Gulf, Egypt’s blue-chip index fell for a second straight session, closing 0.3% lower as most stocks ended in negative territory. Misr Cement dropped 7.8%, while E-finance declined 1.6%.