Dubai: Regional stock markets witnessed a knee-jerk reaction, with Saudi Tadawul losing the most, amid attacks on ships laden with oil products in the Gulf of Oman, fanning geopolitical risks.
The Saudi index shed 1.58 per cent to end at 8,941.54, while the Dubai Financial Market was 1.15 per cent lower at 2,633. The Abu Dhabi Securities Exchange general index dipped 0.54 per cent lower at 4,963.69.
“The correction is due to two reasons: first, the tanker attack in the Gulf of Oman, and, second, the Saudi led colaliation is looking for action after Abha attack,” said an analyst who did not wish to be named. “Gulf of Oman is a strategic stretch for oil transport and any escalation is negative and market concerns are justified.”
Thursday’s fall was seen after continuous gains. Tadawul had been on the up after its inclusion in the MSCI emerging market index. The gauge has gained 11 per cent in the year so far.
In stock specific action, Saudi Kayan Petrochemical Co. closed nearly 2 per cent lower at 12.08 Saudi riyals, and Saudi Basic Industries Corp. 2.15 per cent lower at 118.20 riyals.
In Dubai, Gulf Finance House was hit the most, down 3.26 per cent lower at Dh0.860.