22-06-2025
Most Gulf marketstrade up despite US strikes on Iran
TNN & Agencies
Doha
Most stock markets across the Gulf region traded higher on Sunday, showing remarkable resilience despite heightened geopolitical tensions following US airstrikes on Iran's key nuclear facilities. Investors appeared to be assessing the broader economic impact of the conflict, rather than reacting with panic, as trading sentiment remained largely stable.
Late Saturday, US forces carried out coordinated strikes on three of Iran's primary nuclear sites. The escalation came with a stern warning from President Donald Trump, who stated that Iran would face 'more devastating attacks' if it failed to pursue peace. Despite the gravity of the military action, markets across the Gulf appeared relatively unfazed.
The Qatar Stock Exchange (QSE) index gained 19.06 points, or 0.19 percent, closing at 10,280.20 points. Trading activity remained robust, with over 192 million shares exchanged at a total value of QR357.64 million through nearly 15,000 transactions spanning all sectors.
Investor sentiment was broadly positive on the QSE, with shares of 38 companies closing in the green, while only nine declined and five remained unchanged. The day's performance also led to a rise in market capitalisation, which climbed to QR606.80 billion from QR605.41 billion in the previous session.
In Saudi Arabia, the region's largest bourse also showed resilience. The benchmark Tadawul All Share Index (TASI) edged up 0.4 percent by 09:15 GMT, led by a 0.7 percent gain in shares of Saudi National Bank, the country's largest lender.
Michael Brown, Senior Research Strategist at Pepperstone, commented on the market's reaction, saying, 'It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly.' He noted that markets had already priced in the possibility of a US strike, and there was a growing investor expectation of a swift diplomatic resolution.
Despite the calm market reaction, underlying concerns remain. Bahrain and Kuwait—both hosts to key US military bases—took precautionary measures on Sunday. Bahrain advised motorists to avoid main roads, while Kuwait announced the establishment of shelters at government ministry complexes in preparation for any potential escalation.
Still, investor confidence held, with Kuwait's Premier Index reversing early declines to post a 0.3 percent gain by mid-morning. Bahrain's main index was flat, while Oman's MSX30 rose by 0.5 percent, reflecting cautious optimism.
Outside the Gulf, Egypt's EGX30 benchmark index surged 1.7 percent, buoyed by strong investor sentiment. Meanwhile, Tel Aviv's main stock index advanced by around 1 percent, reaching an all-time high despite the broader regional uncertainty.
While markets have so far taken the latest geopolitical developments in stride, analysts warn that the situation remains fluid. Investors will closely monitor diplomatic developments in the coming days, particularly any response from Tehran or efforts by international actors to de-escalate tensions.
As it stands, regional stock markets are demonstrating a surprising degree of calm and resilience, signaling investor confidence in the Gulf economies' ability to absorb geopolitical shocks—at least in the short term.
