Gulf markets saw notable gains on Sunday as regional tension eased, with Iran downplaying the impact of recent Israeli airstrikes on its military facilities. This development alleviated fears of a major escalation, encouraging investor confidence. The Saudi market led the rise, reflecting growing optimism across the Gulf despite ongoing conflicts.
Saudi Market Rebounds, Led by Al Taiseer and Etihad Etisalat
Saudi Arabia’s benchmark index rose by 1.5%, breaking a three-day losing streak. Aluminum producer Al Taiseer Group saw a remarkable 3.6% increase, while telecom company Etihad Etisalat gained 2.2% following its strong quarterly earnings report. The telecom firm reported a net profit of 829 million riyals ($220.9 million), significantly up from 524 million riyals the previous year.
Read: UN Chief ‘Shocked’ by Gaza Destruction
Positive Trends in Qatar and Egypt
Qatar’s stock market also saw a 1.5% uptick, driven by gains across all major stocks. Petrochemical giant Industries Qatar rose 1.7%, contributing to the broader rally. Outside the Gulf, Egypt’s blue-chip index recorded a 0.9% increase, bolstered by a 2.5% rise in shares of Commercial International Bank, the nation’s largest private-sector lender.
Market Insights on Energy Prices
Market analysts anticipate that crude prices will likely decrease when trading resumes on Monday, as the Israeli airstrikes spared critical Iranian oil and nuclear sites, avoiding disruptions to energy supplies. This outcome has alleviated immediate concerns of an energy shock, though investors remain cautious.
Diplomatic Efforts for Peace
In a bid to further defuse tensions, senior officials from the U.S. Central Intelligence Agency (CIA) and Israel’s Mossad were scheduled to meet with Qatar’s prime minister in Doha. The agenda includes discussions on establishing a new short-term ceasefire deal for Gaza, signaling diplomatic efforts to prevent further escalation.
As Gulf markets continue to stabilize, the easing of geopolitical fears has allowed investors to focus on economic fundamentals, lifting regional indices.
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