Mideast Stocks: Gulf Shares Slide After US and Iran Exchange Strikes

Gulf stock markets fell on Wednesday after the U.S. and Iran exchanged strikes overnight, dimming hopes for a swift easing of tensions in the Middle East.

Qatar's benchmark dropped 1%, with nearly all stocks trading lower. Industries Qatar fell 1.5%, while Qatar National Bank, the region's largest lender, lost 1.4%. 

Saudi Arabia's benchmark index declined 0.8%, led by information technology, communications and healthcare shares. Saudi National Bank, the kingdom's largest lender by assets, fell 1.6%, while Dar Al Arkan Real Estate Development dropped 5.4%. Electrical Industries and East Pipes Integrated Company for Industry bucked the broader trend, rising 2.4% and 4.8%, respectively. 

Separately, Saudi Arabia raised $3.25 billion through a two-tranche U.S. dollar sukuk sale, its second debt-market transaction this year, IFR reported. Orders exceeded $15 billion, with proceeds earmarked for general budgetary needs. 

Abu Dhabi's benchmark index fell 0.7%, weighed down by consumer discretionary, telecommunications and real estate stocks. ADNOC Gas lost 1.2%, while conglomerate Alpha Dhabi Holding declined 2.8%. 

Dubai's main index slipped 0.3%, with most constituents posting declines. Blue-chip developer Emaar Properties fell 1.7%, while toll-road operator Salik dropped 1.5%. 

"Geopolitical developments are likely to continue to affect investor sentiment as traders closely monitor oil prices, shipping conditions in the Strait of Hormuz and progress in diplomatic efforts," said Andrei Constantin, commercial director and trading adviser at TFP Software FZCO. 

"A reduction in regional risk could support local markets, while a sustained escalation may keep a cautious tone across GCC equity markets," he said. 

Outside the Gulf, Egypt's blue-chip index rose 0.5%, supported by materials, industrial and consumer discretionary shares. Misr Fertilizers Production Company climbed 9%, while Abu Qir Fertilizers and Chemical Industries rose 6.8%. Egypt expects the Damietta regasification vessel, which was damaged in a drone attack in July, to resume operations in the fourth quarter of the year. 

SAUDI ARABIA down 0.8% to 11,012 

DUBAI fell 0.3% to 5,815 

ABU DHABI dropped 0.7% to 9,906 

QATAR lost 1% to 9,751 

KUWAIT declined 0.4% to 9,265 

BAHRAIN down 0.1% to 1,939 

OMAN fell 0.1% to 7,607 

EGYPT gained 0.5% to 55,680