Major Gulf markets rise as investors weigh Iran-Qatar talks

Gulf stock markets experienced a rise on Monday as investors evaluated recent discussions between Iranian and Qatari officials to potentially end the US-Israeli conflict with Iran. These talks were spurred by fears the conflict could worsen following the upcoming US midterm elections. President Trump indicated the US would refrain from launching attacks on Iran before the vote, stating the talks with Tehran had yielded positive results, though he has not ruled out further military action after the elections.

Saudi Arabia's benchmark index climbed 0.5%, chiefly driven by gains in materials, real estate, and industrial sectors. Saudi Basic Industries Corp surged 2.3%, while Saudi National Bank, the nation's largest lender by assets, increased 1.2%. However, Gulf Insurance Group experienced a decline of 8.4% after disclosing a 44% drop in quarterly net profit. Leejam Sports also saw a 6.1% decrease following an 11.1% loss in third-quarter net profit.

Qatar's benchmark index increased by 0.2%, with most of its constituents ending higher. Industrial conglomerate Industries Qatar rose 2.9%, and Qatar Gas Transport gained 4.6%. Abu Dhabi's benchmark index climbed 0.3%, with most sectors performing well. Abu Dhabi Islamic Bank advanced 1.1%. ADNOC, the state energy company, saw four listed units gain, with ADNOC Drilling increasing 1.7% and ADNOC Distribution adding 0.8%.

Similarly, Dubai's benchmark index gained 0.6%, with most sectors trading higher. Emirates NBD, Dubai's largest lender, advanced 2.4%, while Emaar Properties, a prominent developer, rose 1.1%. George Pavel, general manager at Naga.com Middle East, noted that market sentiment would likely remain cautious pending any concrete outcomes from the US-Iran talks or changes in perceptions of risk following the midterm elections.

A lack of progress might keep markets trading cautiously, with local fundamentals supporting the markets.