Key Takeaways
- Most Gulf bourses ended higher on Tuesday as diplomatic efforts to de-escalate the Middle East conflict gathered pace.
- Saudi Arabia’s benchmark index advanced 2.3%, led by a 2.8% jump in Al Rajhi Bank.
- Regional tensions remained high, with the Saudi-led coalition intercepting missiles and drones launched by the Houthis.
Gulf stock markets saw a positive performance on Tuesday, with most bourses ending higher as diplomatic efforts to de-escalate the Middle East conflict gathered pace.
Saudi Arabia’s benchmark index advanced 2.3%, with Al Rajhi Bank leading the gains by 2.8%. First Milling Company also saw a significant rise of 9.9% after reporting a steep increase in quarterly profit.
Saudi Aramco ended 1.7% higher, while Methanol Chemical Company finished 9.3% higher after reporting a narrower quarterly loss.
OPEC+ is likely to keep its December oil output targets unchanged on Sunday, in line with expectations that no further policy adjustments will come before next year.
Dubai’s main index leapt 2%, buoyed by a 3.4% rise in blue-chip developer Emaar Properties. GCC stocks extended gains as geopolitical worries eased and regional diplomacy lifted sentiment.
Shipping disruptions on key maritime routes remain a risk, though strong third-quarter earnings could provide further support, said Mahmoud Mashal, senior market analyst at VT Markets Dubai.
DIP Holding, owner of the Dubai Investments Park real estate business, is seeking to raise up to $543 million in an initial public offering. It would be the UAE’s first potential listing this year.
In Abu Dhabi, the index added 1.1%, with Abu Dhabi Islamic Bank increasing 5.7%. The lender reported a marginal rise in third-quarter profit post-trading hours.
Among other gainers, Aldar properties was up 1.6% on higher quarterly earnings. Qatar’s index jumped 3.4%, its best session since April, with Gulf heavyweight Qatar National Bank up 3.1%.
The index had hit a more than six-year low last week. Outside the Gulf, Egypt’s blue-chip index closed 3.5% higher, as all its constituents were in positive territory.
Egypt’s parliament authorised President Abdel Fattah al-Sisi on Monday to use ‘all necessary measures’ to help defend Saudi Arabia, raising the prospect of Cairo’s direct involvement against the Houthis.
