Mideast Stocks: Most Gulf markets in red as Israel-Iran conflict escalates
Most stock markets in the Gulf ended lower on Wednesday with investors exercising restraint due to fighting between Iran and Israel that entered a sixth day, sparking fears of potential regional instability.
Iran's Supreme Leader Ayatollah Ali Khamenei rejected U.S. President Donald Trump's demand for unconditional surrender on Wednesday, as Iranians jammed the highways out of Tehran fleeing from intensified Israeli airstrikes.
Saudi Arabia's benchmark index declined 1.2%, weighed down by a 3.3% slide in ACWA Power Company and a 2% drop in Saudi Arabian Mining Company. Among other losers, Prince Waleed bin Talal-backed airline Flynas Company closed 3.4% lower in debut trade. Elsewhere, oil giant Saudi Aramco eased 0.3%. Additionally, investor uncertainty surrounding today's U.S. Federal Reserve meeting is contributing to the cautious mood, with most market participants expecting the central bank to hold interest rates steady, said Joseph Dahrieh, managing principal at Tickmill.
Dubai's main share index finished 1.2% lower, with blue-chip developer Emaar Properties losing 1.2%. In Abu Dhabi, the index was down 0.4%. Oil prices steadied, after a gain of 4% in the previous session, as markets weighed up the chance of supply disruptions from the Iran-Israel conflict and as they ponder a direct U.S. involvement. The Qatari index lost 0.6%, with Qatar Gas Transport Nakilat falling 3.8%.
Outside the Gulf, Egypt's blue-chip index added 0.4%, helped by a 4.1% jump in Fawry for Banking Technology and Electronic Payment.
SAUDI ARABIA lost 1.2% to 10,591
Abu Dhabi down 0.4% to 9,496
Dubai dropped 1.2% to 5,306
QATAR fell 0.6% to 10,348
EGYPT rose 0.4% to 30,839
BAHRAIN declined 1.1% to 1,889
OMAN was flat at 4,520
KUWAIT retreated 1.6% to 8,544
(Reporting by Ateeq Shariff in Bengaluru; Editing by Vijay Kishore)
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