Major stock indexes in the Gulf were mixed in largely rangebound trade early on Wednesday, as Israel threatened to attack deeper into Lebanon if a truce with Hezbollah collapses.
The truce, which came into effect on Nov. 27, prohibits Israel from conducting offensive military operations in Lebanon, while requiring Lebanon to prevent armed groups including Hezbollah from launching attacks on Israel.
It gives Israeli troops 60 days to withdraw from south Lebanon.
However, Israeli forces have continued strikes against what they say are Hezbollah fighters ignoring the agreement to halt attacks and withdraw beyond the Litani River, about 30 km (18 miles) from the frontier.
Saudi Arabia’s benchmark index slipped 0.1%, hit by a 0.4% fall in aluminium products manufacturer Al Taiseer Group . Qatar’s General Index dropped 0.3%, with Qatar Islamic Bank losing 0.3% and Islamic lender Masraf Al Rayan down 0.6%.
Major Gulf equities track higher oil prices; Qatar flat
Meanwhile, Dubai’s main share index, which resumed trade after a two-session break, edged up 0.2%, helped by a 9% jump in Parkin after HSBC upgraded the stock to “buy” from “hold” and raised its price target to 5.5 dirhams from 3.3 dirhams.
Parkin, which oversees public parking operations in the Emirates, last week received notification from the Roads and Transport Authority approving a variable parking tariff policy in Dubai, effective March 2025.
The Abu Dhabi index – which also resumed trading following a two-day break – added 0.3%. Markets now await US jobs data and comments from Federal Reserve Chair Jerome Powell for cues on the US interest rate cut trajectory.
The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the US dollar.
Source: Brecorder
