GCC stock markets fall amid regional political uncertainty
Date
5/21/2024 9:26:44 AM
(MENAFN) Amidst heightened political uncertainty in the Gulf region following the tragic demise of the Iranian president in a helicopter crash and the postponement of a visit by the Saudi Crown Prince to Japan due to the king's health issues, most stock markets in the Gulf witnessed declines on Monday. The Saudi index experienced a 0.6 percent fall, primarily driven by losses across various sectors, with notable declines observed in the information technology, real estate, and financial sectors. Shares of the National bank of Saudi Arabia, the Kingdom's largest bank, tumbled by 2 percent, while Saudi Basic Industries Corporation (SABIC), one of the world's largest petrochemical companies, saw a decline of 2.3 percent.
Similarly, the Qatari index also recorded a 0.3 percent decline, with Qatar National Bank, the largest bank in the Gulf, witnessing a 1.2 percent decrease, and Industries Qatar, a leading industrial conglomerate, falling by 0.5 percent. In Abu Dhabi, the index experienced a slight downturn, attributed to a 0.4 percent drop in shares of the International Holding Company, while Aldar Properties, the emirate's largest developer, saw a notable increase of 3.5 percent.
Despite the overall negative trend, there were some winners in the market, including ADNOC Distribution and ADNOC Logistics and Services, which saw gains of 1.7 percent and 3.8 percent, respectively. These gains followed an announcement by their parent company, Abu Dhabi National Oil Company (ADNOC), regarding the acquisition of an 11.7 percent stake in the Rio Grande liquefied natural gas export project in Texas, USA, along with the initiation of a supply agreement.
In contrast, the Dubai index saw minimal change, with gains in the real estate, communications, and industrial sectors offsetting losses in the utilities, non-essential consumer goods, and financial stocks sectors. The overall market sentiment in the Gulf region remains cautious amidst geopolitical tensions and uncertainties, with investors closely monitoring developments for potential impacts on market dynamics.
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