Most Gulf markets fall on geopolitical tensions

Most major stock markets in the Gulf fell in early trade on Monday, on worries that rising geopolitical tensions will lead to wider conflict in the region, although the Saudi index bucked the trend to trade higher.

Hezbollah rockets hit Israel's third-largest city Haifa early on Monday as the country looked poised to expand ground incursions into southern Lebanon on the first anniversary of the Gaza war, which has spread conflict across the Middle East.

Iran-backed Hezbollah, an ally of Hamas, the Palestinian militant group fighting Israel in Gaza, said it targeted a military base south of Haifa with a salvo of "Fadi 1" missiles and launched another attack on Tiberias, 65 km (40 miles) away.


The growing conflict has raised fears that the United States, Israel's superpower ally, and Iran will be sucked into a wider war in the oil-producing Middle East.

Dubai's main share index dropped 0.5%, with Parkin Company, which oversees public parking operations in the Emirates, losing 2.3% and budget airline Air Arabia declining 1.9%.

In Abu Dhabi, the index was down 0.6%.

The Qatari index eased 0.1%, with the Gulf's biggest lender, Qatar National Bank, falling 0.4%.

Oil prices - a catalyst for the Gulf's financial markets - fell, after posting their steepest weekly rise in more than a year last week, as oversupply concerns amid softer demand countered the worries over a wider Middle East conflict disrupting exports in the key oil-producing region.

Saudi Arabia's benchmark index, however, gained 1.2%, on course to snap a 3-day losing streak, led by a 2.6% rise in aluminium products manufacturer Al Taiseer Group .

Among other gainers, Saudi perfumer Almajed 4 Oud surged 30% in its trading debut.

During the first three days of trade, the Saudi Exchange allows shares to rise or fall 30%.