Gulf bourses retreat as bank stocks ease on Yemen, Iran war worries

Gulf stock markets experienced a decline on Thursday due to concerns over the escalating conflict in Yemen and the failure of peace negotiations. The Houthis attacked Aden airport, prompting Yemeni forces to evacuate the facility. Saudi Arabia's coalition responded by destroying a missile fired by the group. The Saudi benchmark index fell by 1%, with Al Rajhi Bank down 1.1% and the nation's leading lender, Saudi National Bank, slipping 1.9%.

Saudi Aramco saw a 0.3% decrease. Despite these losses, the Saudi index posted a weekly gain, ending an eight-week losing streak. Dubai's main share index dropped 0.5%, driven by a 4.9% decline in Air Arabia. The Gulf markets remained under pressure due to fears of further tensions, particularly after US midterm elections, and disruptions to energy supply routes.

Analysts noted that progress in regional mediation and indications of US diplomatic efforts might help stabilize the markets. The Abu Dhabi index slipped 1.2%, while the United Arab Emirates' largest lender, First Abu Dhabi Bank, fell 4.2% despite reporting a 6% increase in third-quarter net profit. The Qatari index declined by 0.7%.

Investors were also watching developments aimed at resolving the eight-month-long conflict. Qatar presented Iran with a new draft deal to end the war involving the US and Israel, but Iranian officials dismissed it as unacceptable. Meanwhile, Egypt's blue-chip index rose by 0.6%, with Saudi Arabia down 1% to 9,922, Abu Dhabi falling 1.2% to 9,478, Dubai down 0.5% to 5,818, Qatar slipping 0.7% to 9,151, Egypt up 0.6% to 49,596, Bahrain easing 0.3% to 1,830, Oman dropping 0.4% to 7,346, and Kuwait declining 0.5% to 8,893.