Most stock markets in the Gulf region closed lower on Monday due to concerns that escalating geopolitical tensions could lead to broader conflict. However, Saudi Arabia’s index managed to defy the trend, breaking a three-session losing streak.
Hezbollah rockets struck Israel’s third-largest city, Haifa, early Monday as the country appeared ready to intensify ground operations in southern Lebanon, coinciding with the first anniversary of the Gaza war that has spread unrest throughout the Middle East. This growing conflict has heightened fears of a wider war involving the United States, Israel’s key ally, and Iran in the oil-rich region.
In Dubai, the main share index fell by 0.3%, largely influenced by a 0.8% drop in Dubai Electricity and Water Authority (DEWAA) and a 0.4% decline in blue-chip developer Emaar Properties (EMAR). Additionally, budget airline Air Arabia (AIRA) saw a 0.4% decrease.
Abu Dhabi’s index also slipped by 0.4%.
Conversely, Saudi Arabia’s benchmark index rose by 1.2%, marking an end to three days of losses. Notable gainers included aluminium manufacturer Al Taiseer Group, which climbed 2.1%, and Al Rajhi Bank, which surged 5.1%. Saudi perfumer Almajed 4 Oud debuted with an impressive 30% rise.
In the Saudi Exchange, shares are permitted to fluctuate by up to 30% during the first three days of trading.
Oil prices, a key driver for Gulf markets, continued to rise, with Brent nearing $80. This follows last week’s steepest jump since early 2023, fueled by concerns over potential disruptions to exports from the major oil-producing region amid escalating Middle Eastern conflicts.
Outside the Gulf, Egypt’s blue-chip index closed 0.3% higher.