Most Gulf stock markets ended higher on Thursday, but UAE stocks fell again, widening losses from the previous session, which resumed after a two-day suspension due to Iran’s missile and drone barrage on Emirates Airlines over the weekend.
After reopening, exchanges in Dubai and Abu Dhabi temporarily set price limits on securities at a 5% floor to reduce volatility.
Dubai’s main stock index closed 1.3% lower after falling as much as 4.2% in early trade, with top lender Emirates NBD and blue-chip developer Emaar Properties both down 4.9%.
Low-cost carrier Air Arabia fell 4.9%, while power company Dubai Electricity and Water Authority rose 5.3%.
XTB MENA analyst Milad Azar said the market may remain sensitive to regional developments, but Dubai’s underlying fundamentals are strong and could support a rebound.
Abu Dhabi’s index fell 2.2%, with First Abu Dhabi Bank down 1.2% and Aldar Properties down 5%. Abu Dhabi Commercial Bank fell 4.7%.
Saudi Arabia’s benchmark index ended 0.8% higher, with Al Rajhi Bank gaining 1.7%.
The Saudi index rose 0.6% for the week.
Al Moammar Information System soared 10% to the daily cap on its contract with AI company HUMAIN to design and build a data center.
ACWA Power and Dara Healthcare rose 3.5% and 6.1%, respectively, on higher full-year net profits.
The rebound in the Saudi market was triggered by a rise in oil prices after the initial shock from recent geopolitical tensions. Azar said stocks are likely to recover, buoyed by expectations for solid energy prices amid continued disruption to the Strait of Hormuz, a key energy transport route.
Oil prices rose more than 3%, widening their gains as concerns grew that the war would disrupt oil and gas supplies in the Middle East for an extended period of time.
Meanwhile, oil giant Saudi Aramco’s stock price fell 0.7%.
Qatar’s benchmark rose 1%, while Qatar National Bank, the Gulf’s biggest asset lender, rose 3.2%.
Gains were limited by a 2.5% decline in petrochemical maker Industries Qatar and a 7% decline in Qatar Aluminum Manufacturing Company.
Qatar, the Gulf’s biggest liquefied natural gas producer, on Wednesday declared force majeure on gas exports, and sources said it could take at least a month to return to normal production.
The Oman and Kuwait indexes both rose 1.3%, while the Bahrain index fell 1.1%.
Outside the Gulf, Egypt’s blue-chip index rose 2.3%, led by Commercial International Bank’s 3.7% rise, ending a four-day losing streak.
However, the Egyptian index fell 3.5% for the week, its biggest decline since June.
(Reporting by Ateeq Shariff and Md Manzer Hussain in Bengaluru; Editing by Louise Heavens and Mark Potter)
