Dubai/New York: Major Gulf stock markets were mixed in early trading on Thursday, influenced by escalating Middle East tensions following the killing of Hamas leader Ismail Haniyeh in Iran. This development came just a day after the death of Hezbollah’s top military commander in an Israeli strike in Beirut, raising fears of a broader regional conflict. However, positive sentiment from expectations of U.S. rate cuts provided some support to the markets.
In Saudi Arabia, the benchmark index (.TASI) edged down by 0.1%, with Al Taiseer Group (4143.SE) slipping 0.2%. The Kingdom’s real GDP contracted by 0.4% year-on-year in the second quarter, driven by an 8.5% decline in oil activities, which has constrained growth for several quarters. Despite this, losses were mitigated by a 3% gain in Saudi Basic Industries Corp (2010.SE), following an 85% increase in its second-quarter profit.
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Dubai’s main share index (.DFMGI) saw a 0.4% rise, buoyed by a 1.5% increase in property developer Emaar Properties (EMAR.DU) and a 1.7% gain in Dubai Islamic Bank (DISB.DU). Abu Dhabi’s main index (.FTFADGI) also gained 0.4%.
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The U.S. Federal Reserve held interest rates steady but signaled a potential cut in September, which is significant for the Gulf Cooperation Council (GCC) countries due to their currencies being pegged to the U.S. dollar. The Qatari benchmark (.QSI) fell 0.3%, impacted by a 1.1% drop in Industries Qatar (IQCD.QA).
