Gulf equities mixed as Ras Tanura strike unnerves investors

Gulf stocks ended mixed on Wednesday as an attack on a refinery in top crude exporter Saudi Arabia rattled investors and renewed concerns that conflict in the Middle East could escalate.

Yemen’s Houthis said on Tuesday they had struck the 550,000-barrel-per-day facility, the kingdom’s biggest refinery, with a ballistic missile. Saudi authorities have not immediately confirmed the strike.

Saudi Arabia’s benchmark stock index reversed early losses to finish 0.4% higher, helped by a 0.7% increase in the country’s biggest lender Saudi National Bank.

National Shipping Company of Saudi Arabia advanced 1.6% after reporting a steep rise in quarterly profit.

However, Mobile Telecommunications Company Saudi Arabia retreated 1.5% after a drop in third-quarter profit.

Oil major Saudi Aramco was down 0.3%.

Brent crude futures rose $1.31, or 1.2%, to $115.19 a barrel as of 1115 GMT, underpinned by renewed concerns about supply in the Middle East.

Dubai’s main share index fell 0.3%, with top lender Emirates NBD losing 1.1%.

GCC markets were under pressure as geopolitical risks weighed on sentiment. Trump’s remarks on possible post-midterm military action and ongoing Strait of Hormuz disruptions hampered risk appetite, with focus now on regional mediation efforts for signs of stability, said Ahmed Kamal, CEO at ICM MENA.

On Monday, Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran to try to reduce regional tensions.

In Abu Dhabi, the benchmark stock index declined 1.6%, dragged down by a 5% plunge in Abu Dhabi Islamic Bank .

In the previous session, the sharia-compliant lender reported a marginal rise in third-quarter profit.

The Qatari benchmark rose 0.7%, with Qatar Islamic Bank gaining 2.5%.

Outside the Gulf, Egypt’s blue-chip index slid 1.6%, as most of its constituents were in positive territory including Commercial International Bank , which was down 2.4%.

A Reuters poll showed Egypt’s central bank is likely to keep interest rates unchanged on Thursday for a sixth consecutive meeting, as a record-low pound, high energy costs and rising regional tensions outweigh easing inflation.