Geopolitical fears continue to weigh on markets

GEOPOLITICAL CONCERNS: Markets across much of the Gulf have closed lower. (Getty Images)

Negative market sentiment over regional geopolitical concerns continued on Sunday as bourses across much of the Gulf closed down for the day, led by Qatar, Abu Dhabi and Oman.

Saudi Arabia's main index made its biggest one-day decline in almost four months on Saturday, closing down almost 3 percent, after Iran warned it would lock down the Strait of Hormuz if it was attacked and warned regional states of reprisals if they took part.

In Qatar losses were paced by Industries Qatar and Qatar Islamic Bank, with the pair falling 1.2 percent and 1.72 percent respectively.

The stocks dragged down the main index 1.09 percent to 11,746.14 points. The index has now closed lower three out of the last four sessions.

In Abu Dhabi, the index ended 1.07 percent down to 4,904.36 points. Emirates Telecommunications Corp (Etisalat) and National Bank of Abu Dhabi (NBAD) led losses, closing 1.52 percent and 0.96 percent.

Shares of Emaar Properties and Dubai Financial Market Co dragged Dubai lower, falling 0.91 percent and
2.86 percent. The index slipped 0.49 percent to 5,406.02 points.

"Geopolitical issues in Gulf markets especially in Dubai and Abu Dhabi are leading to selling pressure from institutions in the region and it is following emerging markets," Samer Al-Jaouni, general manager of Middle East Financial Brokerage Co.

Shares of Oman Telecommunication Co (Omantel) and National Bank of Oman weighed on Muscat's benchmark. Omantel and National Bank fell 1.22 and 1.45 percent respectively.

The index, which has fallen in the last three sessions, closed 1 percent down at 11,369.37 points.

"What happened in Oman is what is happening in other GCC markets," said Adel Nasr, local brokerage manager at United Securities.

"There was foreign institutional selling and then retail followed," he said, adding that the pressure had mounted after Iran's comments and the sell-off in US and European stocks on Friday.

Kuwait's benchmark closed 0.51 percent lower to 15,483.9 points. Mobile Telecommunications Co (Zain) and National Bank of Kuwait closed 1.23 percent and 2.13 percent down.

Saudi Arabia and Bahrain were the only two Gulf markets to buck the downward trend.

Shares of Al-Rajhi Bank and Saudi Telecom Co lifted Saudi's index higher, with Al-Rajhi and Saudi Telecom rising 0.88 percent and 0.41 percent respectively. The index edged up 0.12 percent to 9,324.36 points.

Bahrain's index closed 0.08 percent higher at 2,846.46 points. United Gulf Bank paced, rising 2.67 percent and Ithmaar Bank ended 1.39 percent up. The index is up just over 3 percent this year.

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