Gulf shares slide after US and Iran exchange strikes
A trader looks on near electronic boards showing stock market data at Bahrain Bourse after Joe Biden won the U.S. presidency, in Manama, Bahrain, November 8, 2020. REUTERS/Hamad I Mohammed Purchase Licensing Rights , opens new tab Companies Abu Qir Fertilizers and Chemical Industries Co SAE Follow Acwa Power Company SJSC Follow ADNOC Gas PLC Follow Show more companies BENGALURU, Sept 2 (Reuters) - 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. Iran and its Arab neighbours were drawn back into conflict after U.S. forces struck Iran's southern coast and Tehran fired at American bases across the region, in the largest exchange of fire between Washington and Tehran since July. Sign up here. Qatar's benchmark (.QSI) , opens new tab dropped 1%, with nearly all stocks trading lower. Industries Qatar (IQCD.QA) , opens new tab fell 1.5%, while Qatar National Bank (QNBK.QA) , opens new tab , the region's largest lender, lost 1.4%. Saudi Arabia's benchmark index (.TASI) , opens new tab declined 0.8%, led by information technology, communications and healthcare shares. Saudi National Bank (1180.SE) , opens new tab , the kingdom's largest lender by assets, fell 1.6%, while Dar Al Arkan Real Estate Development (4300.SE) , opens new tab dropped 5.4%. Electrical Industries (1303.SE) , opens new tab and East Pipes Integrated Company for Industry (1321.SE) , opens new tab 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 (.FTFADGI) , opens new tab fell 0.7%, weighed down by consumer discretionary, telecommunications and real estate stocks. ADNOC Gas (ADNOCGAS.AD) , opens new tab lost 1.2%, while conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) , opens new tab declined 2.8%. Dubai's main index (.DFMGI) , opens new tab slipped 0.3%, with most constituents posting declines. Blue-chip developer Emaar Properties (EMAR.DU) , opens new tab fell 1.7%, while toll-road operator Salik (SALIK.DU) , opens new tab 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 (.EGX30) , opens new tab rose 0.5%, supported by materials, industrial and consumer discretionary shares. Misr Fertilizers Production Company (MFPC.CA) , opens new tab climbed 9%, while Abu Qir Fertilizers and Chemical Industries (ABUK.CA) , opens new tab 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. Reporting by Md Manzer Hussain in Bengaluru; Editing by Sonia Cheema and Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles. , opens new tab Suggested Topics: Middle East Exploration & Production X Facebook Linkedin Email Link Purchase Licensing Rights