Gulf markets fall on ME tensions

Gulf stock markets dipped slightly on Wednesday as tensions flared between Israel and Gaza, as reported by Reuters.

Saudi Arabia’s main stock index fell 0.2 per cent, dragged down by losses in banking stocks. The kingdom’s economic growth is expected to be slower than predicted this year due to declining oil prices. Saudi AL Rajhi Bank recorded a 0.5 per cent drop and a 1.4 per cent decline in Riyad Bank.

Dubai’s stock market also saw minor losses of 0.1 per cent, with shares in toll operator Salik company which decreased by two per cent and developer Emaar Properties was down 0.8 per cent.

In a separate development, the UAE franchisee of supermarket chain Spinneys is looking to raise up to $375 million through an IPO.

Abu Dhabi’s stock index remained flat, while Qatar’s benchmark index edged slightly higher.

Oil prices rose after data showed a surprise decline in US crude inventories, but gains were limited by ongoing Middle East tensions.