Major Gulf markets mixed on geopolitical tensions
Dec 4 (Reuters) -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 .TASI slipped 0.1%, hit by a 0.4% fall in aluminium products manufacturer Al Taiseer Group 4143.SE.
Qatar's General Index .QSI dropped 0.3%, with Qatar Islamic Bank QISB.QA losing 0.3% and Islamic lender Masraf Al Rayan MARK.QA down 0.6%.
Meanwhile, Dubai's main share index .DFMGI, which resumed trade after a two-session break, edged up 0.2%, helped by a 9% jump in Parkin PARKIN.DU 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 .FTFADGI - which also resumed trading following a two-day break - added 0.3%.
Markets now await U.S. jobs data and comments from Federal Reserve Chair Jerome Powell for cues on the U.S. 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 U.S. dollar.
Reporting by Ateeq Shariff in Bengaluru; Editing by Varun H K
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
