Mideast Stocks: Gulf Equities Edge Lower As Iran War Enters Third Week

RIYADH: Most Gulf equities slipped on Sunday as the US-Israeli war on Iran entered its third week with US President Donald Trump threatening further strikes on the Kharg Island oil export hub and Tehran vowing to intensify its response.

Iranian drone and missile strikes have hit airports, hotels, ports and military and oil installations across the region, exacting an economic and military toll on nearby Gulf states.

Saudi Arabia’s Tadawul All Share Index showed signs of resilience amid geopolitical turmoil, as it just marginally declined by 0.06 percent or 6.64 points to close at 10,886.63.  

The total trading turnover of the benchmark index stood at SR2.97 billion ($790 million), with 109 of the listed stocks advancing and 148 declining.

The Kingdom’s parallel market Nomu edged up by 0.31 percent to 22,438.82.

The MSCI Tadawul Index declined by 0.11 percent to 1,475.18.

The best-performing stock on the main market was Saudi Pharmaceutical Industries and Medical Appliances Corp., as its share price increased by 8.11 percent to SR29.32.

The share price of Methanol Chemicals Co. advanced by 7.38 percent to SR8.59.

Al Hassan Ghazi Ibrahim Shaker Co. also saw its stock price climb by 7.15 percent to SR16.34.

Conversely, the share price of Modern Mills for Food Products Co. declined by 5.38 percent to SR27.44.

The Trump administration has rebuffed efforts by Middle Eastern allies to launch diplomatic negotiations aimed at ending the war with Iran, three sources familiar with the matter said.

The US president also called on allies to deploy warships to help secure the Strait of Hormuz, a vital route for global energy supplies, as Tehran vowed to escalate its response.

Crude futures rose on Friday as the strait remained closed.

In another sign of the economic fallout from the conflict, Formula One’s Bahrain and Saudi Arabian Grand Prix will not take place in April, the sport announced on March 14.

The Qatari index declined by 0.24 percent, while the Bahrain bourse and Oman’s Muscat Stock Exchange dropped by 0.49 percent and 0.45 percent, respectively.

Boursa Kuwait’s premier market also eased by 0.08 percent.

UAE equities were closed on Sunday due to an official holiday.

The US State Department said on Saturday that it had directed non-essential government personnel and the family members of government employees to leave Oman due to safety concerns amid the ongoing conflict.