Gulf equity markets ended Sunday with mixed results as renewed geopolitical tensions over the Strait of Hormuz and a "serious violation" of the ceasefire cited by U.S. President Donald Trump weighed on investor sentiment.
While markets in the Gulf struggled with uncertainty, Egypt's blue-chip index saw a significant surge, driven by a massive new real estate development, according to Reuters.
Gulf Markets Under Pressure
The Saudi Arabian benchmark index (TASI) declined 0.8%, hit by a 1.2% drop in oil major Saudi Aramco and a 0.7% fall in Al Rajhi Bank. The decline reflects a sharp reversal from Friday's optimism when oil prices had settled nearly 9% lower on hopes of a sustained waterway opening.
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In Qatar, the benchmark index (QSI) finished the day flat following a choppy trading session.
Tankers Turned Back in Hormuz
Investor caution intensified after reports surfaced on Sunday that Iranian armed forces had turned back two tankers in the Strait of Hormuz. The Tasnim news agency described the incident as a response to "unauthorised transit."
This follows Tehran's Saturday announcement that it was tightening control and re-closing the vital energy route, a move President Trump characterised as "blackmail." Despite the escalating rhetoric and Trump's claim of a ceasefire breach, he insisted that a peace deal "would happen."
ALSO READ | 'No Right To Interfere': Iranian President Pezeshkian Rebukes Trump Over Nuclear Policy
Egypt's Blue-Chip Index Surges
In a sharp contrast to the Gulf, Egypt's EGX30 gained 1.8%. The rally was largely fueled by a 7.9% surge in Talaat Moustafa Group Holding (TMG).
The developer announced the launch of "The Spine" in Madinaty, a project valued at over 1.4 trillion Egyptian pounds ($27.09 billion). TMG expects the development to generate more than 1.7 trillion Egyptian pounds in sales and deliver EGP 50 billion in annual recurring revenue at maturity.
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