Key Takeaways
- Saudi Arabia’s benchmark index edged 0.1% higher as Al Rajhi Bank rose 1.8%.
- Riyadh Cement plunged 4.9%, leading losses on the index.
- Tensions escalated following Houthi attacks and maritime security incidents.
Gulf stock markets showed mixed performance on Monday, with Saudi Arabia’s benchmark index reversing early losses to edge 0.1% higher. Al Rajhi Bank led gains, rising 1.8%, while Arabian Drilling gained 3% following a significant gas-drilling contract.
However, Saudi Aramco lost 0.2%, and Saudi Arabian Mining Company and Saudi Basic Industries Corp declined 1.5% and 1.9%, respectively. Riyadh Cement, the top loser, plunged 4.9% after trading ex-dividend.
The market was pressured by escalating security concerns, including a drone strike that temporarily shut down Saudi Arabia’s East-West oil pipeline, a key route carrying up to 4% of global oil supply. Sources stated that Yanbu port inventories could support exports for only five to seven days if the disruption continues.
Tensions further mounted following reported Houthi strikes in southern Saudi Arabia and fresh attacks on vessels near the Strait of Hormuz. Saudi Arabia requested the postponement of a planned Oman meeting between Iran and Gulf states, according to Iran’s foreign ministry.
Saudi state media released footage showing damage to homes and a mosque in Jazan province, blaming a Houthi attack. The Houthis also claimed responsibility for targeting a Saudi military base in a neighboring region.
Maritime security concerns intensified after a projectile hit a vessel in the Strait of Hormuz, sparking a fire and prompting the crew to abandon ship, according to the UK Maritime Trade Operations agency.
Elsewhere, Dubai’s main share index gained 0.5%, led by a 6.4% jump in blue-chip developer Emaar Properties, which announced that its board would meet on Wednesday to discuss enhancing shareholder returns and capital allocation.
In Abu Dhabi, the index was up 0.1%, supported by a 6.5% jump in Space42 after the firm and California-based Viasat agreed to establish Equatys, a direct-to-device satellite communications platform, committing up to $1 billion to the venture.
Outside the Gulf, Egypt’s blue-chip index retreated 1.6%, while other markets showed mixed performance: Saudi Arabia 10,878, Abu Dhabi 10,118, Dubai 5,977, Qatar 9,824, Bahrain 1,930, Oman 7,630, and Kuwait 9,318.
