Slim gains for Gulf bourses capped by lack of progress to end Iran war
Most stock markets closed modestly higher on Wednesday, led by one-off gains for individual stocks, while dimming hopes of a deal to end the Iran war weighed on broader market sentiment. A senior Iranian source told Reuters that Tehran and Washington had not held talks on extending the ceasefire, as Iran considered the agreement to have had no defined dates. The United States and Yemen’s Houthis…
The Gulf's stock markets experienced modest gains on Wednesday, propelled by one-off gains for individual stocks, as hopes for a resolution to the Iran war cast a shadow over broader market sentiment. Iran and the United States reportedly failed to discuss extending the ceasefire, with Iran viewing the agreement as lacking defined dates.
The United States and Yemen's Houthis each reported separate attacks on shipping vessels on Tuesday. Iranian Deputy Supreme Commander Mohsen Rezaei asserted that the Strait of Hormuz would remain closed until the United States acknowledges Iran's terms for ending the conflict, including the release of frozen assets and cessation of other regional disputes.
Oil prices saw a boost due to renewed doubts about a swift conclusion to the war, with Brent crude futures rising 1.4% to $88.91 per barrel and U.S. crude increasing 1.3% to $83.20. Saudi Arabia's benchmark index saw a slight gain of 0.1%, buoyed by a 1.5% rise in Saudi Arabian Mining Co, which had declined 1.2% on Tuesday. Petrochemical company Saudi Basic Industries Corp, however, fell 3.1% as it traded ex-dividend.
Yemen's Iran-aligned Houthis targeted a Saudi vessel carrying military equipment in Bab el-Mandeb, according to Saba, the Houthis' news agency. Dubai's main share index rose 0.7%, primarily on a 1.4% gain for blue-chip developer Emaar Properties. Markets analyst Daniel Takieddine of Sky Links Capital Group suggested that the Gulf markets will likely remain sensitive to developments at the Strait of Hormuz: a credible de-escalation could rekindle risk appetite, whereas further disruptions might dampen sentiment and heighten pressure on regional assets.
Abu Dhabi's index saw a rise of 0.1%. Shipping data indicated that only six vessels transited the Strait of Hormuz on Monday, a sharp drop from a 10-day average of around 11. Prior to the war, the crucial waterway facilitated roughly 125 to 140 vessels per day. The Qatari index added 0.4% to 10,056, with petrochemical firm Industries Qatar gaining 1%.
Outside the Gulf, Egypt's blue-chip index gained 0.4%, while Saudi Arabia rose marginally by 0.1% to 10,844. Abu Dhabi added 0.1% to 10,013, Dubai gained 0.7% to 5,020, Qatar increased 0.4% to 10,056, Egypt rose 0.4% to 55,040, Bahrain declined 0.2% to 1,952, Oman climbed 0.2% to 7,482, and Kuwait saw a 0.3% increase to 9,313.
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