Gulf markets close mixed as investors assess U.S.-Iran diplomacy

BENGALURU: Gulf stock markets closed mixed on Thursday while investors assessed renewed diplomatic efforts between the United States and Iran and progress in talks over the Strait of Hormuz.

Qatar’s prime minister visited Tehran on Thursday in a bid to revive diplomacy after the United States and Iran exchanged recriminations over Washington’s plans to step up economic pressure on Tehran, a move an Iranian official described as “all-out economic war”.

Qatar and Iran discussed a proposed phased framework that includes establishing a temporary Iranian-Omani shipping corridor through the strait and launching a joint project to clear mines from the waterway, Qatar’s foreign ministry said.

Dubai’s main index rose 0.3%, with most sectors ending in positive territory. Emirates NBD, Dubai’s largest lender, gained 1.2%, while toll-road operator Salik Company advanced 1.3%.

Qatar’s index added 0.2%, led by materials and energy stocks. Gulf International Services surged 6%, while Qatar Gas Transport rose 1.1%.

QatarEnergy has issued a spot tenderto sell light and full-range naphtha cargoes on a free-on-board basis from Ras Laffan port, near the Strait of Hormuz, traders said. A document reviewed by Reuters on Wednesday confirmed the tender.

Abu Dhabi’s benchmark was little changed. ADNOC Gas fell 1.2%, while First Abu Dhabi Bank, the UAE’s largest lender, rose 1.1%.

Abu Dhabi Ports gained 0.8% after its board recommended shareholders accept L’imad’s AED 6.25-per-share cash offer for the remaining stake in the ports and logistics operator, following a fairness opinion from HSBC Middle East.

The offer values AD Ports at about AED31.8 billion ($8.6 billion), representing a 23% premium to its closing price before the bid was announced. ADQ, a wholly owned subsidiary of L’imad, already owns a 75.42% stake in the company.

Saudi Arabia’s benchmark index slipped 0.2%, ending a seven-session winning streak. Al Rajhi Bank and Saudi Arabian Mining Company each fell 1%.

“The Saudi main index could face some correction risks as investors move to secure gains,” said Joseph Dahrieh, managing director at Tickmill.

“Going forward, GCC markets are likely to remain sensitive to geopolitical developments, with investors closely watching for tangible outcomes from diplomatic talks and their implications for oil prices, the energy sector and regional logistics,” he added.