Economy
Qatar Shares Surge 4.6% as Gulf Markets Slide on Iran War Fears
Qatar's benchmark index jumped 4.6% on Sunday, its sharpest intraday gain in more than eight years, even as markets in Saudi Arabia, Kuwait, Bahrain, Oman and Egypt fell on fears of renewed conflict between the United States and Iran.
Photo: Forextime.com / Wikimedia Commons (CC BY 2.0). Photo shows a stock market concept, not a Gulf trading floor.
Gulf stock markets fell on Sunday as investors remained wary of the risk of renewed conflict between the United States and Iran after this week's US midterm elections, although Qatar's market bucked the regional trend.
Countries across the Gulf have been bracing for the possibility that President Donald Trump could resume military action against Iran after the November 3 vote. Tehran has repeatedly warned it would retaliate against any new attacks by targeting US and Israeli interests in neighbouring countries.
Qatar's benchmark index rebounded from the previous session's decline to rise 4.6% to 9,575, marking its sharpest intraday percentage gain in more than eight years. Investor sentiment was supported by QatarEnergy's efforts to secure long-term liquefied natural gas supplies from the United States and other producers, part of a trading strategy designed to protect revenues should exports through the Strait of Hormuz be disrupted.
S&P affirmed Qatar's AA/A-1+ sovereign ratings with a stable outlook, citing the country's substantial liquid, fiscal and external asset buffers amid regional security and trade-flow risks. Qatar National Bank, the region's largest lender, advanced 3%, while QatarEnergy-linked industrial conglomerate Industries Qatar jumped 7.9%.
Elsewhere, Saudi Arabia's benchmark index slipped 0.8% to 9,838, with nearly all constituents ending lower. Saudi Arabian Mining Co lost 2.6%, while Jabal Omar Development fell 7.3% after the real estate developer reported a third-quarter net loss of 261.61 million riyals, compared with a net profit of 197.85 million riyals a year earlier. IT solutions provider Elm Co, however, gained 9% after reporting a 39% rise in quarterly net profit.
Kuwait's benchmark lost 0.8% to 8,826, Bahrain's fell 0.6% to 1,819 and Oman's dropped 0.7% to 7,293. Outside the Gulf, Egypt's blue-chip index fell 1.9% to 48,650, with nearly all stocks closing lower. Commercial International Bank declined 2.2% and Talaat Moustafa Group dropped 2%.
Egypt's central bank raised its key interest rates by 100 basis points on Thursday, its first rate increase since March 2024.
Source: Reuters
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