Oil Bourses in the Gulf, the major stock markets in the Gulf were subdued in early trade on Thursday as oil prices slumped after concerns over geopolitical tensions eased.
Topics
Saudi A Volatile Oil Market
Geopolitical Tensions
Poland’s NATO Membership Enough to be protected
Saudi A Volatile Oil Market
Saudi Arabia’s benchmark index (.TASI) fell 0.2% on Thursday,
hit by a 0.6% drop in Retail Urban Development Co (4322. SE) and a 0.8% decrease in Riyad Bank (1010. SE).
The index looked poised to post its fourth weekly loss, while other markets in the region were mixed.
The fall in oil prices weighed on energy stocks and dragged down the Saudi index,
which was down 0.3 %at 0940 GMT.
Separately, the kingdom has signed investment agreements worth around $30 billion with South Korean companies,
Asharq TV quoted the Kingdom’s investment minister Khalid Al-Falih as saying on Thursday.
Al Hokair Group (1820. SE) shares surged 6% in early trading after the company announced it had reduced its accumulated losses to zero.
The Saudi Arabian hospitality firm, which operates hotels, restaurants, and amusement parks across the Middle East,
said the reduction was due to “improved operating performance and cost control measures”.
The news will come as a relief to investors who have seen Al Hokair’s share price fall by almost 50% over the past year.
Geopolitical Tensions
Brent crude futures fell below $85 a barrel, after earlier touching a two-week high of $86.74,
on concerns that escalating tensions between Russia and the West could lead to supply disruptions.
However, analysts said that fears of a wider conflict had abated for now and that was reflected in stock markets across the globe.
“Geopolitical risk has receded somewhat and so have oil prices,” said Mohammed Ali Yousuf, chief investment officer at CAPM Investment in Dubai.
Crude prices have been on a roller coaster ride in recent months,
and the latest drop is sure to add more volatility to the Gulf’s financial markets.
The key catalyst for this latest dip is rising concerns about demand in China,
the world’s largest crude importer. With new cases of COVID-19 still being reported in China,
there is growing worried that oil demand will take a hit as the virus continues to spread.
This news has sent shockwaves through global markets and has led to a sell-off in crude prices.
While this news is certainly causing concern, it’s important to remember that the oil market is highly volatile and prices can change quickly.
So, while we may see some short-term pain as a result of these latest developments,
there could also be some opportunities for traders and investors who are willing to take on some risk.
As always, it’s important to stay focused and disciplined when trading
or investing in any market, especially during times of uncertainty like we’re seeing now.
Poland’s NATO Membership Enough to be protected
Poland has been a NATO member since 1999, and the alliance has played a key role in protecting the country from Russian aggression.
However, recent events have shown that Russia is not afraid to violate NATO’s airspace,
as evidenced by the crash of a missile inside Poland earlier this week.
While it is still unclear whether or not this missile was fired by Russia or Ukraine,
one thing is for sure: Poland must remain vigilant in its defence against both countries.
With tensions running high between Russia and Ukraine, there is no telling when another incident could occur. As such,
Poland must continue to rely on NATO for its protection against any potential threats.
However, some analysts remain cautious about the company’s prospects in light of recent political tensions in the region.
The Dubai Financial Market General Index eased 0.1% in early trading on Tuesday, with blue-chip developer Emaar Properties losing 0.3%.
The index has been under pressure in recent weeks as investors worry about the impact of higher interest rates on the economy.
However, Tuesday’s modest losses suggest that some investors are still bullish on Dubai’s prospects.
Emaar is one of the most important companies listed on the DFMGI,
and its share price movements can have a big impact on the index.
The company is currently working on several large developments,
including a new mall and residential project in Dubai Creek Harbor.
On Tuesday, the tanker was hit by what appeared to be an Iranian missile, the official said, speaking on condition of anonymity.
The attack came amid heightened tensions between Iran and the United States over Tehran’s nuclear program.
It also followed a series of mysterious attacks on oil tankers in the Gulf region that Washington has blamed on Iran.