Dubai: Saudi Arabia’s Tadawul index fell on Monday, extending losses in yet another session amid heightened geopolitical risks.
On Sunday, media reported that Saudi Arabia had shot down missiles over Taif. The developments come in the wake of sabotage incidents off the coast of Fujairah and at an Aramco refinery.
“[The] market is on the edge. A few institutions are selling due to concerns in market. They are getting out,” Mohammad Shabbir, head of funds and portfolios at Saudi Kuwaiti Finance House (SKFH), told Gulf News.
The Tadawul index fell 1.41 per cent to 8,405.03, taking the index’s total losses to 10 per cent since May 1.
“So far the fall is continuing. Only if geopolitical problems subside, then they may return,” Shabbir said.
The impact has been so hard given that the Tadawul, with its double-digit returns, was the best-performing index among emerging market bourses. However, the year-to-date returns now stand at 8 per cent.
“Barely half of the gains are left. We may undo the rally that we did so far in the year. It could go to 7,500. It would have support where the market was at the start of the year,” Shabbir said.
In stock-specific action, Al Rajhi Bank was 1.3 per cent lower at 68.30 Saudi riyals while Saudi Basic Industries Corp fell 1.45 per cent to 109 riyals.
The Dubai Financial Market (DFM) general index closed 0.25 per cent lower at 2,513.22.
On the losing end were Emaar Properties which shed 0.48 per cent to Dh4.11, Dubai Islamic Bank (DIB) 0.20 per cent to Dh4.89, Arabtec 2 per cent to settle at Dh1.41 and Aramex 1 per cent to Dh1.74.
The Abu Dhabi Securities Exchange (ADX) general index closed flat at 4,732.94.
First Abu Dhabi Bank closed at Dh13.88, up 0.58 per cent while Abu Dhabi Commercial Bank rose 0.46 per cent to Dh4.40.
Elsewhere in the Gulf region, the Muscat MSM 30 index slipped 0.42 per cent to 3,844.63 while the Kuwait All Share Index shed 0.27 per cent to end 5,560.84.
The Bahrain index closed 0.16 per cent lower at 1,396.46. However, the Qatar Exchange index advanced 0.25 per cent to end at 9,898.58