Most Gulf stock markets advanced on Sunday, with Saudi Arabia leading gains despite a lack of progress in efforts to end the Iran conflict and continuing disruption to shipping in the Strait of Hormuz.
Saudi Arabia’s Tadawul All Share Index rose 0.9 per cent to close at 10,920, supported by gains in some of the kingdom’s biggest-listed companies.
Al Rajhi Bank, the country’s largest lender by market value, gained 1.5 per cent, while Saudi Aramco rose 1 per cent.
The gains came as oil prices remained elevated, providing support for energy-exporting Gulf economies. Brent crude futures settled at $88.52 a barrel on Friday, up $1.45, or 1.67 per cent.
Hormuz disruption
Uncertainty over the outlook for crude remains high as the disruption to one of the world’s most important energy corridors continues.
Traffic passing through the Strait of Hormuz fell sharply after the war broke out on February 28. The waterway is a critical route for oil and liquefied natural gas exports from Gulf producers, making disruption a significant risk to global energy markets. The uncertainty has prompted Gulf producers to make better use of alternative export routes.
More recently, shipping activity has again slowed sharply, with only a handful of vessels passing through the strait on Friday amid renewed attacks in the region and tension between Washington and Tehran.
Diplomatic efforts have meanwhile struggled to produce a breakthrough. Iran on Saturday called on the US to concede defeat, while President Donald Trump described Tehran as “very evil” and warned Americans that fuel prices could remain high because of the war.
Markets across the region rose recently as investors assessed the prospects of an agreement. Gulf shares fell last week as hopes of a quick settlement faded, before posting modest gains on Wednesday and a mixed performance on Thursday.
Regional markets
Saudi Arabia’s Tihama Advertising, Public Relations and Marketing surged 7.3 per cent after its board terminated the contract of chief executive Hussain Masoud Al Dossari.
Qatar’s benchmark index gained 0.2 per cent to 10,045, helped by a 1.5 per cent rise in Qatar National Bank, the region’s biggest lender.
Oman’s market added 0.3 per cent to finish at 7,535, while Kuwait was unchanged at 9,295. Bahrain slipped 0.1 per cent to 1,952.
Egypt’s EGX30 index climbed 1.1 per cent to 55,855. Telecom Egypt gained 3.6 per cent, extending its advance from the previous session after reporting a sharp increase in quarterly profit.
