Major Gulf bourses in red on geopolitical tensions

Most Gulf stock markets were subdued in early trade on Thursday, hit by geopolitical tensions in the Middle East, although the Qatari index bucked the trend to trade higher.

Israeli aircraft struck what its military said were rocket launch sites in south Lebanon early on Thursday in response to earlier projectile fire towards Israel from Lebanese territory.

On Tuesday, three maritime security sources claimed Iranian-backed forces seized an oil product tanker off the coast of the United Arab Emirates. Iran denied the reports.

Saudi Arabia’s benchmark index declined 0.6 per cent, with Al Rajhi Bank losing 0.7 per cent, while Saudi Arabian Mining Co retreated 4.3 per cent, despite posting a quarterly net profit.

Among other decliners, food retailer Savola Group fell 0.9 per cent, extending losses from the previous session when it reported a drop in second-quarter net profit.

On the other hand, Tanmiah Food Company jumped over 16 per cent, a day after its stellar debut surging 30 per cent.

Dubai’s main share index lost 0.4 per cent, hit by a 1.2 per cent fall in Sharia-compliant lender Dubai Islamic Bank.

On Wednesday, the bank advanced 2.8 per cent after saying that the increase in foreign ownership limit to 40 per cent has already been implemented.