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…
Gulf equities experienced a mixed performance on Wednesday following a missile strike on Saudi Arabia's largest refinery, causing investor concerns about potential Middle East conflict escalation. Saudi Arabia's benchmark stock index recovered from early losses to close 0.4% higher, aided by a 0.7% rise in the nation's largest lender, Saudi National Bank.
National Shipping Company of Saudi Arabia gained 1.6% after reporting a significant increase in quarterly profits, while Mobile Telecommunications Company Saudi Arabia declined 1.5% due to a drop in third-quarter earnings.
Oil giant Saudi Aramco saw a 0.3% decrease. Brent crude futures rose by $1.31, or 1.2%, to $115.19 a barrel, driven by renewed concerns about Middle Eastern supply disruptions. Dubai's main share index fell by 0.3%, with top lender Emirates NBD shedding 1.1%. Geopolitical risks weighed on Gulf markets as Trump's comments on potential post-election military action and ongoing Strait of Hormuz disruptions dampened risk appetite.
Most focus now lies on regional mediation efforts to restore stability, according to Ahmed Kamal, CEO at ICM MENA.
On Monday, Saudi Arabia, Turkey, and Pakistan convened Iranian officials in Tehran to attempt reducing regional tensions. Abu Dhabi's benchmark stock index fell 1.6%, largely driven by a 5% plunge in Abu Dhabi Islamic Bank. The bank had previously reported a slight rise in third-quarter profits. The Qatari benchmark index increased by 0.7%, with Qatar Islamic Bank gaining 2.5%.
Outside the Gulf, Egypt's blue-chip index dropped 1.6%, with most of its constituents performing well, including Commercial International Bank, which fell 2.4%. A Reuters poll suggested that Egypt's central bank would likely maintain interest rates unchanged for the sixth consecutive meeting, despite a record-low pound, high energy costs, and rising regional tensions.
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