Gulf stock markets experienced a downturn on 10/20/2024‚ with most indices closing lower. The decline was attributed to heightening regional tensions and a slump in oil prices.
Israels military targeted what it claimed were Hezbollah arms facilities in southern Beirut on 10/19/2024. This action came after the Lebanese group launched rockets into northern Israel and reportedly sent a drone towards Benjamin Netanyahuʼs vacation residence. The ongoing promises of continued conflict from Israel‚ Hamas‚ and Hezbollah have dampened hopes for potential truces in Gaza and Lebanon‚ despite the recent death of Hamas leader Yahya Sinwar.
Saudi Arabias benchmark index dipped 0.2% – ACWA Power Company saw a 1.8% decrease while the countrys largest lender‚ Saudi National Bank‚ dropped 0.7%. Oil prices (a key driver for Gulf financial markets) fell by more than 7% over the week ending 10/18/2024. This decline was influenced by data showing Chinas economic slowdown and investorsʼ mixed outlook on the Middle East situation.
The impact of lower oil prices and export disruptions is significant for nations reliant on oil revenue affecting their fiscal balances. In Qatar‚ the index retreated 1.1%‚ with all its components in negative territory; the regions largest lender‚ Qatar National Bank‚ experienced a 1.5% decline.
Outside the Gulf‚ Egypts blue-chip index fell 2%‚ weighed down by a 3.2% slide in Commercial International Bank