Tadawul leads losses in region

TRUMP’S DECISION ON IRAN NUCLEAR DEAL ADDS TO GEOPOLITICAL UNCERTAINTY

Gulf equity indices fell yesterday led with Saudi Arabia’s Tadawul index due to uncertainty on the future of the nuclear deal with Iran, adding to the uncertain geopolitical climate.

Saudi Arabia’s Tadawul index was 1.4 per cent lower to 8,003.83, witnessing a sharp fall among regional indices. The energy index was among the worst impacted with 5 per cent losses followed by capital goods and commercial services.

“The market is nervous about the Trump decision on the Iran nuclear deal. Mena markets generally are more sensitive to such geo political tensions,” Vrajesh Bhandari, portfolio manager at Al Mal Capital said.

Donald Trump was to decide later yesterday whether the US will pull out of the nuclear accord with Iran.

Alinma Bank was 0.62 per cent lower to 20.72 Saudi riyals. Dar Alarkan Real Estate Development Co. was 3.38 per cent lower at 12.26 riyals.

The Dubai Financial Market General Index closed 0.47 per cent lower at 2,948.84. Traded value rose to Dh313 million from Dh250 million a day earlier.

“Retail investors are perhaps preparing for Ramadan — liquidating certain positions and going in with relatively less trading exposure to monitor over the period,” Bhandari said.

Dubai Islamic Bank closed at Dh5.63, down 0.18 per cent. Gulf Finance House closed 0.18 per cent lower at Dh1.36. Emaar Properties closed nearly a per cent at Dh5.30. Arabtec closed more than 5 per cent lower at Dh1.66.

Abu Dhabi

The Abu Dhabi Securities Exchange general index closed 1.33 per cent lower at 4,479.49. Watania closed 8 per cent lower at Dh0.42. Dana Gas closed 5 per cent weaker at Dh1.06.

Elsewhere in the Gulf, the Qatar exchange index closed 1.3 per cent lower at 8,870.16. The Muscat MSM 30 index closed 0.43 per cent lower at 4,691.37. The Kuwait index closed 0.2 per cent lower at 4,785.82. The Bahrain index closed 0.42 per cent weaker at 1,273.21.