Mideast Stocks: Gulf equities mixed as US-Iran talks loom; Saudi extends decline

PHOTO

Gulf stock markets were mixed on Wednesday, with Saudi Arabia extending its fall on fiscal concerns, as market participants awaited a third round ⁠of U.S.-Iran nuclear talks scheduled for Thursday.

Saudi Arabia's benchmark stock index slipped 0.5%, deepening its ‌losses as the kingdom's budget deficit widened quarter-on-quarter due to higher expenditures. Losses were broad-based, with financial stocks leading the decline, including a 0.7% descent in Al Rajhi Bank, the world's largest Islamic lender, and a 0.8% drop in Saudi National Bank, the country's largest lender by assets. In contrast, Power and Water Utility Co MARAFIQ soared 8.4%, marking its strongest daily performance in nearly five months after reporting a staggering 2,520.58% jump in ⁠its full-year profits.

Energy giant Saudi Aramco dipped 0.4%. Reuters reported earlier this week, citing trade sources, that Aramco had sold several shipments of ultra-light crude oil from its $100 billion Jafurah gas plant to U.S. majors and an Indian refiner, ahead of its first export later this month.

Although external pressures are weighing on most Gulf markets, underlying ‌fundamentals remain strong, ⁠indicating potential for a ⁠rebound once geopolitical tensions ease, said Milad Azar, market analyst at XTB MENA.

Oil prices, a key catalyst for gulf markets, held around seven-month highs as investors weighed up the threat ‌to oil supply from potential military conflict between the U.S. and Iran.

Dubai's ⁠main stock index added 0.1%, supported by a recovery in banking stocks. Emirates NBD Bank advanced 1.3%, rebounding from its steepest single-day decline in nearly three months in the previous session, while district cooling services provider EMPOWER gained 1.7%.

Abu Dhabi's benchmark index closed flat in a volatile session, as uncertainty and cautious sentiment stalled recent gains. Aldar Properties declined 0.7%, while Abu Dhabi Commercial Bank rose 1.3%. Emirates Telecommunications' shares fell 0.6%, snapping a three-day rally as optimism surrounding a CEO change and dividend announcement was tempered by profit-taking and uncertainty over the company's direction under new leadership.

Qatar's stock index eased 0.2%, ‌pressured by weakness in banking stocks. Telecommunications firm Ooredoo fell 1.5%, while Qatar ⁠National Bank slipped 0.2%.

Outside the Gulf, Egypt's blue-chip index trimmed early losses but still closed 2.7% lower, continuing a volatile trend of sharp losses and recoveries in recent sessions. All sectors ended in negative territory, with Commercial International Bank, the country's largest private lender, and real estate developer Talaat Moustafa Group both ‌losing 4%.

The Kuwait Bourse was closed on account of National Day and ⁠Liberation Day.