Major Gulf markets rise as investors weigh Iran-Qatar talks

BENGALURU: Major Gulf stock markets gained on Monday as investors assessed talks between Iranian and Qatari officials aimed at securing an agreement to end the US-Israeli conflict with Iran.

The talks come amid concerns that the conflict could escalate after the November 3 US midterm elections.

President Donald Trump has said the United States would not launch fresh attacks on Iran before the vote and that discussions with Tehran had been productive, although he has not ruled out further military action afterwards.

Meanwhile, Chinese Foreign Minister Wang Yi said on Monday that all parties involved in the Middle East conflict should pursue political solutions rather than resort to force again, during a meeting with an Iranian national security official in Beijing.

Saudi Arabia’s benchmark index rose 0.5%, led by materials, real estate and industrial stocks. Saudi Basic Industries Corp gained 2.3%, while Saudi National Bank, the kingdom’s largest lender by assets, advanced 1.2%.

However, Gulf Insurance Group fell 8.4% after reporting a 44% drop in quarterly net profit. Leejam Sports slid 6.1% after the sports and fitness club operator posted an 11.1% decline in third-quarter net profit.

Qatar’s benchmark index added 0.2%, with most constituents ending higher. Industrial conglomerate Industries Qatar rose 2.9%, while Qatar Gas Transport gained 4.6%.

Abu Dhabi’s benchmark advanced 0.3%, with most sectors in positive territory. Abu Dhabi Islamic Bank rose 1.1%.

The four listed units of Abu Dhabi National Oil Co also gained. ADNOC Drilling rose 1.7%, ADNOC Distribution added 0.8%, while ADNOC Gas and ADNOC Logistics each gained 0.3%.

Separately, ADNOC and artificial intelligence firm G42 signed an agreement on Monday with OpenAI to deploy advanced AI capabilities across the state energy company’s operations.

Dubai’s benchmark index rose 0.6%, with nearly all sectors trading higher. Emirates NBD , Dubai’s largest lender, advanced 2.4%, while blue-chip developer Emaar Properties gained 1.1%.

“Looking ahead, sentiment is likely to remain sensitive to any concrete developments in US-Iran talks or shifts in post-midterm risk perceptions,” said George Pavel, general manager at Naga.com Middle East.

“A lack of outcomes may cause markets to continue trading cautiously, with local fundamentals underpinning the markets,” he added.

Outside the Gulf, Egypt’s blue-chip index fell 0.7%, with nearly all shares declining. Eastern Company slipped 5.8%, while Fawry for Banking Technology dropped 3.4%.