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Business Standard
5 hours ago
- Business
- Business Standard
Israel's equity stocks rise on hopes US strikes may ease Iran conflict
Middle Eastern stocks rose on Sunday, led by Israel and Egypt, as the region's traders bet the US strikes on Iran may accelerate the end of the conflict between the country and Israel. Israel's TA-35 benchmark index advanced 1.5 per cent, posting a sixth successive day of gains and staying on course for the biggest quarterly advance since 2003. Egypt's equity benchmark posted a 2.7 per cent jump. Other markets in the region recorded modest gains. The Boursa Kuwait Premier Market Index and the MSX30 Index in Muscat added 0.4 per cent each. Qatar's benchmark was 0.2 per cent higher. Saudi Arabia's Tadawul All Share Index fell 0.3 per cent. 'Markets are focused on whether the war spreads to other countries and there is no evidence of that as yet,' said Hasnain Malik, a strategist at Tellimer in Dubai. 'The benign interpretation is that the US intervention will accelerate the end of the war. That, of course, remains to be seen.' In Israel, bank shares accounted for most of the gains, while defense supplier Elbit Systems Inc. dropped more than 2 per cent. 'The market is displaying cautious optimism against the backdrop of the security reality,' Yaniv Pagot, vice president of trading at Tel Aviv Stock Exchange, said in a note. 'The increases reflect an improvement in the risk premium of the State of Israel.' Irrespective of early reaction in the Middle East, global investors are bracing for market turbulence that may trigger a dash into haven assets on Monday. Money managers are now watching out for Iran's potential response, including whether it may attempt to block the Strait of Hormuz — a key passage for oil and gas — and whether it attacks US assets in the region. 'Short-term, markets such as crude oil will pivot on whether Iran retaliates and widens the war in a way that impacts oil supply versus backing down and offering concessions on its nuclear program,' Tellimer's Malik said. 'The biggest risk to the region is a collapse of the regime in Iran and a descent into Syrian-style civil war. US intervention may increase the probability of this.'
The National
10 hours ago
- Business
- The National
Gulf markets hold steady despite US entry into Israel-Iran war
Gulf stock markets held steady on Sunday after the US struck three nuclear sites in Iran in overnight attacks, escalating the Israel-Iran war that threatens to disrupt energy supplies from the oil-rich region. Saudi Arabia's Tadawul gave up early gains and its main index ended traded 0.34 per cent lower. Qatar's main index closed up 0.19 per cent, while the main market in Kuwait ended the session 1.81 per cent higher on Sunday. Bahrain's bourse closed up 0.27 per cent, while the main index on the Muscat bourse reversed early losses to end 0.42 per cent higher. "Markets are focused on whether the war spreads to other countries and there is no evidence of that as yet," Hasnain Malik, head of emerging and frontier market investment strategy at Tellimer, told The National. "The benign interpretation is that the US intervention will accelerate the end of the war. That, of course, remains to be seen." Investor attention is now centred on the risk of Iranian retaliation, particularly towards US assets, regional energy infrastructure, and maritime routes like the Strait of Hormuz and the Red Sea, Iridium Advisor said in a note on Sunday morning. " GCC investor sentiment will be shaped by rising geopolitical risk following US air strikes on Iranian nuclear sites," it said. "While broad financial disruption appears unlikely, markets will monitor liquidity conditions. For now, the market impact will hinge more on the nature and timing of Tehran's response than the strikes themselves." Meanwhile, the Tel Aviv stock market also gained on Sunday, with the TA-125 index up 0.98 per cent and TA-35 up 0.75. The US military bombed three nuclear sites in Iran, President Donald Trump said on Saturday night, calling the attacks a "spectacular military success". "Iran's key nuclear enrichment facilities have been completely and totally obliterated," he said. He also warned of the possibility of further attacks, saying there were "many targets left". "Iran, the bully of the Middle East, must now make peace. If they do not, future attacks will be far greater and a lot easier." Iran retaliated on Sunday morning with about 25 missiles, authorities said. The war, which began on June 13 following air strikes by Israel on Tehran, has rattled investors. The UAE markets ended higher last week, with the Dubai Financial Market up 1.5 per cent at the close of session and the Abu Dhabi Securities Exchange gaining 0.95 per cent at market close. Global stocks ended last week on a mixed note, with both the S&P 500 and the Nasdaq composite ending the session on Friday lower, while the Dow Jones Industrial Average closed slightly higher. In Europe, London's FTSE 100 closed 0.2 per cent lower, while Paris' CAC 40 gained 0.5 per cent. Frankfurt's DAX was up 1.3 per cent. In Asia, Hong Kong's Hang Seng index edged 1.3 per cent higher and Shanghai's composite was down 0.07 per cent, with Japan's Nikkei down 0.2 per cent.
Business Insider
15-06-2025
- Business
- Business Insider
The African country suffering the most from Iran's and Israel's missile strikes
The Middle East for the last few years has been no stranger to missile strikes, as tensions in the region continue to escalate with no real end in sight. The effects of these hostilities have unfortunately found their way into Africa, particularly countries located in the MENA region. Currently, Egypt is feeling the most heat from the recent conflict between Israel and Iran. Tensions in the Middle East are impacting nearby regions, particularly Egypt in Africa. Egypt's economy is severely affected, with its stock index experiencing dramatic losses. Regional instability has led to a delayed inauguration of the Grand Egyptian Museum, affecting tourism revenue. As tensions between Iran and Israel escalate into outright military war, Egypt has emerged as the African country facing the most immediate economic consequences. With regional instability reverberating across markets, Egypt's banking industry has been particularly severely affected, worsening an already weak economic situation. On Friday, Egypt's major stock index performed the worst, at one point recording the worst losses in five years. Also the country's currency value dropped below the 50-per-dollar threshold. 'It is no surprise that with an open-ended Israel-Iran shooting war under way, that regional markets have been pounded too, as far as Egypt, which has seen gas supplies from Israel cut off,' said Hasnain Malik, a strategist at Tellimer in Dubai. 'The spike in oil price reflects the risk of Iranian exports going offline but not serious disruption to the Strait of Hormuz, through which 20% of global oil falls.' Futhermore, Egypt's major stock index, the EGX 30, fell as much as 7.7% on the first day of trading since the war erupted. All 31 publicly traded businesses reported losses while the pound traded as weak as 50.6 units per dollar, according to local-bank quotes, as per Bloomberg. Beyond the financial markets, the turmoil has hampered Egypt's cultural and tourist goals. The government postponed the long-awaited opening of the $1 billion Grand Egyptian Museum, which has been in the works for over two decades and is located barely a mile from the Giza Pyramids. The ceremony, which was scheduled to begin formally on July 3, has been pushed back until the fourth quarter, with authorities citing "current regional developments" as the cause, another report by Bloomberg highlighted. This delay is more than just symbolic; it stifles a vital cash stream for Egypt's tourist industry, which has long been a foundation of the national economy. The Grand Egyptian Museum is expected to draw up to 5 million visitors yearly, resulting in a significant increase in foreign currency inflows and employment creation. Israeli and Iranian military attacks have been fierce for the third day in a row. Targeting military, nuclear, and energy facilities in places including Tehran, Natanz, and Isfahan, Israel conducted a series of bombings deep into Iranian territory, purportedly killing key commanders and scientists and damaging missile installations. Iran responded by attacking Israel with more than 200 ballistic missiles and drones as part of what it named Operation True Promise III. Although many were stopped by Iron Dome, David's Sling, and Arrow systems, dozens managed to get past defenses and hit Tel Aviv, Haifa, Bat Yam, and other locations, killing at least 10–15 Israeli civilians and injuring hundreds more. The U.S., Russia, China, and the EU have all called for de-escalation, but with both Israel and Iran signaling determination to press on, fears of a wider regional war are growing. Analysts warn that if Hezbollah in Lebanon, or Iranian allies in Iraq and Yemen, become more involved, the situation could spiral beyond control.
Mint
15-06-2025
- Business
- Mint
Egypt Leads Mideast Stock Losses Amid Strikes; Israel Rebounds
Most Middle Eastern markets dropped on Sunday as investors signaled growing concerns of a wider conflict amid tit-for-tat attacks by Israel and Iran. Egypt's main stock index was the worst performer among markets that opened for the first time since the attack began on Friday, posting the biggest losses in more than a year on concerns that a halt in Israeli gas production will lead to fuel shortages in the import-dependent country. Its currency weakened past the 50-per-dollar mark at local bank trades. Israel's equity benchmark ended higher, erasing intraday losses, as defense supplier Elbit Systems Ltd. rallied. In Saudi Arabia, the Tadawul gauge's declines were limited by Aramco, which gained on the back of higher oil prices. The escalation comes at a challenging time for Middle Eastern equities after they underperformed global markets so far this year, dragged by oil-price volatility, geopolitical uncertainty and fiscal strains in some countries including Saudi Arabia. The weekend's events have already dented hopes for a quick end to the hostilities and boosted demand for haven assets such as gold and the dollar. 'It is no surprise that with an open-ended Israel-Iran shooting war under way, that regional markets have been pounded too, as far as Egypt, which has seen gas supplies from Israel cut off,' said Hasnain Malik, a strategist at Tellimer in Dubai. 'The spike in oil price reflects the risk of Iranian exports going offline but not serious disruption to the Strait of Hormuz, through which 20% of global oil falls.' Israel and Iran continued to bombard each other for a third day, their long-standing enmity erupting into open conflict on the heels of hostilities in Gaza and Lebanon. It has already led to the cancellation of nuclear talks between Iran and the US and undermined cross-asset bets in the region predicated on a return of peace. Egypt's EGX 30 Index fell as much as 7.7%, before paring losses to 4.6%. All its 31 stocks posted declines, while the pound traded as weak as 50.6 units per dollar, according to local-bank quotes. Israel shut down production at its biggest natural gas field over the weekend, stopping supplies to Egypt. Israel's stock index rose 0.5% as of 4:05 p.m in Tel Aviv thanks to a 6% jump in defense supplier Elbit. The maker of rockets, drones and aerial defense systems for Israel's army said last month it's betting on growing business in Europe as well. The Saudi market mostly joined the selloff as 222 of the benchmark index's 253 stocks posted losses. However, the impact was offset by gains for Saudi Aramco, which rose 1.8% on the back of Friday's surge in crude prices. Other markets across the region including Kuwait and Qatar retreated. Investors' key concern remains oil supply chains and prices. West Texas Intermediate crude futures advanced more than 7% to settle near $73 a barrel on Friday, for the biggest one-day jump since March 2022. 'In the most negative scenario of a complete disruption to Iranian oil supply and a closure of the strait of Hormuz, oil could rise to above $120 per barrel,' said George Saravelos, global head of FX strategy at Deutsche Bank AG. With assistance from Galit Altstein, Omar Tamo and Tarek El-Tablawy. This article was generated from an automated news agency feed without modifications to text.
TimesLIVE
29-05-2025
- Business
- TimesLIVE
Surge in cedi currency eases Ghana's foreign debt burden
Ghana's cedi currency has jumped more than 40% versus the US dollar this year, far outperforming its African and emerging market peers, shrinking the cost of the country's foreign debt and giving it more fiscal breathing room. The rally, which has surprised some investors, is another much-needed boost for the West African nation as it claws its way back from debt default and a punishing economic crisis. In all the cedi has gained 42% against the dollar since January, changing hands near 10.20 to the greenback on Wednesday morning according to LSEG data. "We have reduced our total debt over the last five months by almost 150-billion cedis [R260.78bn] which is very significant," Ghanaian President John Mahama told a session during the African Development Bank annual meeting in Abidjan this week, citing the cedi strength. "If that trajectory continues, the target of reaching 55-58% debt sustainability by 2028 will be reached by the end of this year. And that means that it begins to give us fiscal space to begin to invest in the most productive sectors of the economy." While the dollar has also been under pressure this year, the cedi's performance stands in stark contrast to other African currencies. Investment bank JPMorgan, in a note to clients, said the gold windfall — with prices having chalked up 28 record highs by April — was a tailwind for the cedi. Tellimer's Hasnain Malik, in a note, said the country's on-track International Monetary Fund (IMF) programme, as well as restrictive monetary policy, have also helped the "extraordinary spike". Lutz Röhmeyer, head of portfolio management at Capitulum Asset Management, said local Ghanaian holders of dollar debt exchanging their money back into cedis was also helping the gains. On Monday Ghana's central bank governor Johnson Asiama, speaking at the Ghana CEO Summit in Accra, said the central bank had not used its own reserves to support the cedi. He cited tight monetary policy, cleaner FX auctions and stronger remittance flows. But Malik and Röhmeyer each warned that the rally may not last. "There are reasons for caution after this spike," Malik wrote in the Tellimer note, citing drops in oil and cocoa prices, IMF forecasts that implied a coming depreciation.
