Gulf Stocks Mixed amid Confusion over US-Iran Talks
Gulf markets closed mixed on Tuesday. Qatar?extended losses, while other bourses stabilized as investors parsed contradictory signals about potential U.S.Iran 'talks.
The mood was volatile when U.S. President Donald Trump delayed attacks on Iran's energy infrastructure and spoke of "productive" talks to end the U.S.-Israeli conflict with Iran. But Tehran dismissed this comment as "fakenews".
Semafor, citing an official from the United States, reported that the U.S. would continue to strike Iran. The pause, however, only applied to energy sites. The report said that Israel was not included in Washington's contact with Tehran.
The conflict has caused a sharp rise in energy prices and disrupted air travel. It also affected shipping via the Strait of Hormuz, a vital route for oil and LNG exports.
Dubai's main stock index rose up to 4%, before closing 1.6% higher. Gains in "heavyweight" real estate and bank stocks boosted the index. Emirates NBD Bank gained 7.3% intraday, its biggest gain in over a year. Emaar Properties also added 4%.
The index rose 1.1% in?Abu Dhabi. Abu Dhabi National Energy grew by 3%, and Two Point Zero Group rose by 5.1%.
LSEG data show that the Dubai index has reduced its losses for the year to date by 9.5% while Abu Dhabi is down by 4.7%.
George Pavel, the general manager of Naga.com Middle East, believes that any signs of tension easing could boost equities even further, given the strong domestic fundamentals within the UAE.
Saudi Arabia's benchmark reversed previous declines and closed 0.03% higher. Banking stocks were the main support. Al Rajhi Bank increased by 3.3%, while Saudi National Bank grew by 3.1%. Saudi Aramco dropped 1.5%, and Saudi Arabian Mining fell 6.8%.
Shipping data indicates that crude oil exports from Saudi Arabia’s western Yanbu Port rose sharply to almost 4 million barrels a day last week. This is a dramatic increase from the levels seen before the Iran War.
Qatar's index fell 1.4%, continuing losses from its previous session on 18 March. Financial and energy stocks led the way. Qatar Gas Transport (Nakilat), which is owned by Qatar National Bank, fell 5.4% and Qatar National Bank dropped 3.5%. Doha does not mediate between Washington and Tehran, but it supports all diplomatic channels for ending the war, according to its foreign ministry.
Bahrain's index rose 0.2% and Oman's 1.9%. Boursa Kuwait slipped 0.3%.
Commercial International Bank (?COMI.CA) fell 4.3%, while Egypt's blue-chip index dropped 1.4%.
Oil prices are continuing to rise as the war continues and the Strait of Hormuz remains closed for a fifth of the world's oil and LNG. Brent crude rose 3% to $102.97 per barrel at 1225 GMT. (Reporting from Mohd. Edrees, Bengaluru. Editing by Arun. Koyyur. Mark Potter.)
(source: Reuters)