Gulf stock markets were subdued on Wednesday due to falling oil prices and rising geopolitical tensions, particularly in Israel and Lebanon. Saudi, Qatar, and Abu Dhabi indices fell, while Dubai’s index gained.
Bollywoodfever: Major stock markets across the Gulf were largely subdued on Wednesday, influenced by declining oil prices and rising geopolitical tensions in the region.
Oil prices, a key driver for the Gulf’s financial markets, dropped as investors questioned the effectiveness of China’s stimulus measures to fuel enough economic growth to increase demand from the world’s largest crude importer.
However, a dip in U.S. crude oil and fuel stockpiles provided some support for the markets, which have generally rebounded since hitting a low in mid-September.
- Saudi Arabia’s benchmark index (.TASI) fell 0.2%, impacted by a 1.1% decline in Saudi Awwal Bank and a 0.8% drop in Alinma Bank.
- Qatar’s index (.QSI) also dipped by 0.1%, with Qatar Islamic Bank losing 0.4% and telecom firm Ooredoo declining by 1%.
Geopolitical tensions escalated further after an Israeli airstrike on Beirut killed a senior Hezbollah commander, Ibrahim Qubaisi, on Tuesday. The incident heightened fears of a full-blown war in the Middle East, exacerbating market unease.
- Abu Dhabi’s index (.FTFADGI) declined by 0.2%.
In contrast, Dubai’s main share index (.DFMGI) bucked the trend, rising by 0.3%. Parkin Company advanced 2.8%, while toll operator Salik gained 0.7%.
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