Mideast Stocks: Middle Eastern bourses advance on Iran-Israel ceasefire

PHOTO

Stock markets in the Middle East ended higher on Tuesday after U.S. President Donald Trump announced a ceasefire between Iran and Israel and shrugged off what he said were violations by both sides just hours later.

The 12-day conflict saw millions flee Tehran and prompted fears of further escalation in the region. Saudi Arabia's benchmark index advanced 2.4%, boosted by a 2.8% rise in Al Rajhi Bank and a 3.2% increase in the country's biggest lender Saudi National Bank . Among other gainers, recently-listed Flynas jumped 6.6% to 79.20 riyals.

The Gulf markets continued to recover today with strong gains, boosted by news of the ceasefire, which improved market sentiment and helped investors regain their risk appetite, said Osama Al Saifi, Managing Director for MENA at Traze. On the other hand, oil behemoth Saudi Aramco declined 1.6%, while fertilizers firm SABIC Agri-Nutrients Company retreated 4.6%.

Oil prices extended losses to hit a two-week low on what the market viewed as lower risk of supply disruptions in the Middle East following the ceasefire. Brent crude futures were down $3.06, or 4.3%, at $68.41 a barrel at 1233 GMT.

Dubai's main share index leapt 3.4% - its biggest intraday gain since mid-December - buoyed by a 5.1% surge in blue-chip developer Emaar Properties. The Dubai index is a few whiskers away from 17-year high. According to Al Saifi, with its strong fundamentals, the Dubai stock market is in a favorable position to record new highs. Elsewhere, budget airliner Air Arabia closed up 7.8% - its biggest single-day rise in over three years.

In Abu Dhabi, the index gained 2.5%, led by a 10% rise in Aldar Properties. The Qatari benchmark index climbed 1.9%%, with Qatar Islamic Bank rising 2.8%.

Qatar reopened its airspace after a brief suspension, its civil aviation authority said early on Tuesday, following a missile attack by Iran on an American air base in Qatar on Monday that caused no injuries. Outside the Gulf, Egypt's blue-chip index climbed 3.8% - its highest in over a year - as almost all its constituents were in positive territory including Commercial International Bank, which was up 4.7%.