Geopolitical tensions and an escalating conflict involving Iran have cast a heavy shadow over regional financial markets, as oil prices surged past the $100 barrier, reshaping risk calculations for investors across Gulf stock markets. The rapid developments have created a complex equation of opportunities and threats, forcing market participants to reassess their positions amid unprecedented uncertainty.
The crisis has triggered divergent responses across Gulf bourses, with some markets benefiting from the oil price surge while others face selling pressure. Regional stock market performance reflected this turbulence during the shortened trading week before Eid al-Fitr holidays, which began March 17 and conclude March 23, according to market data.
Saudi Stock Market Performance Amid Oil Price Rally
The Saudi stock market posted positive performance during a brief two-session trading week, with the main index closing at 10,946.26 points, up approximately 0.5% from the previous week’s close of 10,893.27 points. The gains came despite volatile conditions that affected sectoral indices throughout the period.
Energy sector stocks, particularly Aramco shares, provided key support as oil prices climbed due to the Iran conflict and closure of the Strait of Hormuz. This surge persisted despite significant interventions by the United States and energy agencies, including the largest-ever release from strategic petroleum reserves, according to market analysts.
The Saudi index has maintained gains exceeding 2% since the beginning of March, demonstrating relative resilience amid regional instability. However, the performance reflects the complex dynamics between energy sector benefits and broader market uncertainties affecting investor sentiment.
Kuwait Bourse Records Weekly Losses
Kuwait stock market indices posted losses during the week, pressured by pervasive uncertainty stemming from the Iran conflict and its regional ramifications. The Premier Market Index fell 1.56% to close at 9,042.48 points, while the General Market Index declined 1.5% to 8,477.92 points.
The Main Market Index dropped more than 1.3% to 7,890.08 points, and the Main 50 Index lost approximately 0.21% to reach 8,239.6 points. Market capitalization for traded shares stood at 50.64 billion dinars during the four-session week, representing a decline of roughly 1.5% compared to the previous week’s 51.42 billion dinars.
Trading volumes fell significantly, with 676.86 million shares changing hands, down more than 20% from the previous week. Trading values declined by over 17% to 221.99 million dinars, while the number of transactions dropped 27.45% to 49,370 deals, reflecting cautious investor behavior.
Individual Stock Performance in Kuwait
Hotels stock led decliners within the General Market Index, plunging 18.45%, followed by Markaz down 11.06% and Powerhouse falling 10.96%. Meanwhile, Thuraya topped gainers with a 28.42% surge, followed by Cleaning Company up 18.75% and Al Kout rising 14.21%.
Qatar Exchange Faces Downward Pressure
Qatar’s stock market concluded weekly trading at 10,292.16 points, down 1.85% from the previous week’s close of 10,485.94 points. Nearly all sectors retreated except insurance, trade, and real estate, according to exchange data.
Trading volumes reached 784.4 million shares, with total trading values of 2.48 billion Qatari riyals across 109,678 transactions. Market capitalization stood at 611.03 billion riyals at week’s end.
Qatar General Insurance and Reinsurance led decliners with a 13.43% drop, followed by Commercial Bank down 10% and Al Rayan Bank falling 6%. Conversely, Qatar Cinema and Film Distribution topped gainers with approximately 9% growth, followed by Qatar Aluminum Manufacturing up 8% and Doha Bank rising roughly 7%.
Muscat Exchange Posts Modest Gains
In a four-session trading week, the Muscat Securities Market index rose 0.34% to close at 7,765.46 points, gaining 26.03 points supported by advances in services and industrial sectors. However, market capitalization edged down marginally to 37.212 billion rials from 37.225 billion rials the previous week.
Weekly trading volumes dropped more than 42% to 756.6 million securities, while trading values fell approximately 41% to 246.98 million rials. Financial Services stock led gainers with 31.34% growth, followed by Phoenix Power up 15.79% and Al Sawadi Power rising 12.82%.
Bahrain Bourse Registers Negative Performance
Bahrain’s stock exchange recorded negative weekly performance amid evident selling pressure on most leading stocks. The Bahrain All Share Index fell 1.84% to close at 1,912.55 points, while the Bahrain Islamic Index declined more sharply by 5.48% to 921.87 points.
Trading volume reached approximately 5.2 million shares with a total value near 2.04 million Bahraini dinars. Ten companies declined while seven advanced during the period.
Market participants across the Gulf region remain in wait-and-see mode as geopolitical developments continue to evolve, with any expansion of the conflict or further disruptions to oil supplies likely to trigger additional market volatility in coming sessions.
