DUBAI: Saudi Tadawul index led regional losses as traders preferred to put risk off the table amid geopolitical tensions heightened between the US and Gulf allies and Iran.
The Tadawul index shed 127 points or 1.44 per cent to be at 8,741.98, extending losses for a fourth straight session. The index has shed 2.76 per cent since June 18.
“It all falls back on geopolitical tensions arising from US-Iran conflict. The current geopolitical landscape remains rocky and leaves investors overwhelmed with uncertainty with regards to the impact of a war breaking out,” Issam Kassabieh, senior analyst with Menacorp said. The index has been the best performing regional index with 14 per cent gains in the year so far mainly due to the MSCI upgrade, however the index may give up some of its gains.
“Saudi Arabia is expected to gradually inch lower. Kuwait will very likely be upgraded by MSCI tomorrow and we expect that market to continue to be in favour for some time,” Vrajesh Bhandari, senior portfolio manager with Al Mal Capital told Gulf News. The Kuwait all share index closed 0.31 per cent lower at 5,799.31.
In the UAE, First Abu Dhabi Bank (FAB) shares tumbled with the Abu Dhabi index after FTSE buying evaporated.
FAB closed 1.73 per cent lower at Dh14.74. The Abu Dhabi Securities Exchange index closed 1.11 per cent lower at 4,988.78.
“Markets today are normalising after the aggressive lift on Thursday close due to the FTSE rebalancing. Regional geo political tensions also are making investors cautious,” Bhandari said. The Abu Dhabi Securities Exchange general index closed 1.11 per cent lower at 4,988.78.
Other banking shares also fell. Abu Dhabi Commercial Bank ended 1.72 per cent lower at Dh8.55. Abu Dhabi Islamic Bank ended 1.49 per cent lower at Dh4.64.
The Dubai Financial Market general index closed 0.72 per cent lower at 2,639.75.
Emaar Properties closed 1.56 per cent lower at Dh4.41 and the was second most active stock in trade. Shuaa Capital closed 5.43 per cent higher to end at Dh0.952.
Traded volume jumped ahead of its board meeting on Tuesday, when the board would meet to discuss the strategic investor transaction with Abu Dhabi Financial Group. Traded volumes jumped to 11 million shares, the highest since April 16. Elsewhere in the Gulf, the Bahrain all share index closed 0.06 per cent higher at 1,455.86, bucking the weak regional trend.