Most Gulf bourses higher despite US strikes on Iran
DUBAI: Most stock markets in the Gulf recovered from early losses to end higher on Sunday, despite US strikes on Iranian nuclear sites and investors' eye on the conflict's economic impact.
US forces struck Iran's three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace.
In Qatar, the index concluded 0.2% higher, helped by a 2.6% rise in telecoms firm Ooredoo and a 1.2% increase in Qatar Gas Transport.
'It is admittedly a bit surprising to see regional equities shrugging off the US strikes on Iran with relative ease, with opening losses having pared relatively rapidly,' said Michael Brown, Senior Research Strategist at Pepperstone.
Brown said that the markets had already discounted the probability of a US attack, and investors anticipated a swifter resolution to the conflict following the attacks.
The Gulf market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added.
Bahrain and Kuwait, home to US bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex.
Kuwait's premier index reversed early losses to finish 0.4% higher, while Bahrain's main index added 0.3%. The Omani share index was up 0.4%.
Jaap Meijer, head of research at Arqaam Capital, said he expected limited downside potential, as investors will likely capitalize on dips, especially in stocks that have been undervalued or stand to gain from rising oil prices.
Gulf economies remain insulated, supported by stable oil flows, robust sovereign wealth funds and diversification efforts, making their equities appealing for income investors, added Meijer.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
40 minutes ago
- Business Recorder
Banks, miners drag Aussie stocks lower; Mideast tensions loom
Australian shares slipped on Monday, pressured by banks and miners, as cautious investors braced for possible Iranian retaliation against the US attacks on nuclear sites, fuelling concerns over global growth and inflation. The S&P/ASX 200 index fell 0.7% to 8,446.0 points by 0057 GMT. The benchmark had ended 0.2% lower on Friday. Iran vowed to defend itself after the US dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site, while its parliament approved a move to close the Strait of Hormuz, which handles nearly a quarter of global oil shipments. 'The first moves will be reactive, possibly knee-jerk and out of fear: a typical 'shoot first and ask questions later' approach,' Kyle Rodda, a senior financial market analyst with said. He wondered if Iran would retaliate by choking off oil tankers in the Strait of Hormuz. Meanwhile, Australia's Foreign Minister Penny Wong said Canberra supported the US strike on Iran and called for de-escalation and a return to diplomacy. Energy stocks gained 0.5%, tracking oil prices, which jumped to a five-month high as Washington's weekend move to join Israel in attacking Iran stoked supply worries. Woodside and its smaller peer Santos rose 0.6% and 1.3%, respectively. Banks dropped 0.6% to drag the benchmark lower. Australian shares rise on the back of banks, energy stocks The 'Big Four' banks slipped between 0.7% and 1.6%. Miners fell 0.9% on weaker iron ore prices as demand continued to battle a persistent slump in China's property market. BHP and Rio Tinto lost 1.2% and 0.1%, respectively. In company news, Metcash rose as much as 5.4% to its highest in more than a year after the wholesale distributor's full-year net profit attributable jumped 10%. The stock was the top gainer on ASX 200. Markets now await local consumer price index data later this week for further cues into the Reserve Bank of Australia's interest rate trajectory. New Zealand's benchmark S&P/NZX 50 index slipped 0.2% to 12,544.73 points.
Business Recorder
40 minutes ago
- Business Recorder
Gold subdued as dollar gains, markets await Iran response
Gold prices edged lower on Monday as investors favoured the dollar following the US attack on key Iranian nuclear sites over the weekend, with markets closely watching for Iran's response. Spot gold was down 0.2% at $3,362.29 an ounce, as of 0341 GMT. US gold futures fell 0.2% to $3,378. 'The US strikes on Iranian nuclear facilities resulted in the dollar receiving safe haven buying flows in the currency market,' KCM Trade Chief Market Analyst Tim Waterer said. 'This USD uptick had pegged gold back and caused an uncharacteristically subdued performance from the precious metal despite risks stemming from the conflict.' The dollar rose rose 0.2% against its rivals, making gold more expensive for other currency holders. US President Donald Trump on Sunday raised the question of a regime change in Iran following US strikes against key military sites over the weekend, as senior officials in his administration warned Tehran against retaliation. Iran vowed to defend itself a day after the US dropped 30,000-pound bunker-buster bombs onto the mountain above Iran's Fordow nuclear site. Meanwhile, Iran and Israel continued to trade volleys of missile attacks. An Israeli military spokesperson said Israeli fighter jets had struck military targets in western Iran. Gold price per tola gains Rs1,465 in Pakistan Shares slipped in Asia on Monday and oil prices briefly hit five-month highs, but there were no signs of panic selling across markets. The Federal Reserve's latest monetary policy report to Congress, released on Friday, said US inflation remained somewhat elevated and the labor market was solid. On the technical front, spot gold may retest support at $3,348 per ounce, a break below could open the way toward $3,324, according to Reuters technical analyst Wang Tao. Elsewhere, spot silver rose 0.2% at $36.07 per ounce, platinum edged 0.1% higher to $1,269.17, while palladium gained 0.2% to $1,046.62.
Business Recorder
an hour ago
- Business Recorder
Japan's Nikkei drops on Iran risks but weaker yen limits losses
TOKYO: Japan's Nikkei share average fell on Monday as US attacks on Iranian nuclear sites fueled risk aversion, while the accompanying jump in oil prices weighed on the outlook for Japan's economy and corporate earnings. The Nikkei sank 0.55% to 38,191.87 as of the midday recess, with 161 of its components declining, versus 60 that rose and four that traded flat. The broader Topix slumped 0.62%. Japan imports almost all of its oil, making the economy highly sensitive to crude prices, which surged to six-month peaks on Monday as traders waited nervously to see Iran's response to the US's entry into the conflict. Japan's Nikkei trades lower as uncertainties in Middle East conflict weigh Japanese manufacturers are also vulnerable to energy price spikes. At the same time, analysts pointed to the yen's decline to a nearly six-week low versus a broadly stronger US dollar as providing some support to shares in Japan's heavyweight exporters, whose overseas revenues gain in value when the yen weakens. 'The rise in the dollar-yen interest rate has been very clearly helpful for the Nikkei's performance,' said Yunosuke Ikeda, chief macro strategist at Nomura Securities. The safe-haven yen is weakening because 'investors seem more focused this time on the impact of higher oil prices on Japan's trade balance,' Ikeda said. Chip-sector stocks underperformed, with Screen Holdings falling 3.76% to be the Nikkei's biggest decliner in percentage terms, while Tokyo Electron and Advantest were the biggest drags in index-point terms with respective declines of 2.42% and 1.69%. The best performing stocks were oil explorers and refiners, with the Topix mining sub-index climbing 1.49% and the oil and coal sub-index adding 0.51%.
