Most Gulf markets muted as Iran tensions keep investors wary

Most Gulf stock markets remained moderate on Tuesday as investors remained cautious following the U.S. decision to not extend a temporary ceasefire agreement, and an Iranian official's warning that Tehran would adopt a "fully offensive" military stance. Qatar's main index experienced a 0.5% drop, extending losses for a second day in a row, closing at 9,848 points - its lowest level in over a year. The country's largest bank, Qatar National Bank, experienced a 0.7% decline, while telecom company Ooredoo fell by 1.5%.

Saudi Arabia's benchmark index remained unchanged as gains in materials, energy, and healthcare stocks balanced out declines in other sectors. Saudi National Bank, the kingdom's largest lender, saw a 0.5% decrease, while Jarir Marketing fell by 4.3%. SABIC Agri-Nutrients Co gained 2.4%, and Saudi Arabian Mining Co rose by 1.9% after signing a memorandum of understanding to explore opportunities in the fertilizers and integrated agri-nutrients value chain.

Dubai's main index remained little changed, with losses in communications, utilities, and industrial shares being offset by gains in other sectors. Emirates Integrated Telecommunications, also known as du, fell by 3.1%, while Emirates NBD rose by 1.8%. Abu Dhabi's benchmark index increased by 0.2%, extending its winning streak to a fifth consecutive day, with most sectors ending higher.

Abu Dhabi Islamic Bank gained 1.1%, and Emirates Telecommunications Group advanced by 3.9%. AD Ports continued its upward trend, rising by 2.9% following a 14.9% surge in the previous session - its biggest one-day increase since September 2022.

The UAE's stock markets appeared more resilient compared to previous conflict periods, according to Samer Hasn, senior market analyst at XS.com. He noted that the UAE has managed to stay relatively unaffected by the ongoing Middle East unrest, despite occasional attacks on UAE-affiliated tankers.