On Sunday, the 21st of July 2019, in the wake of growing collywobbles in the Gulf following seize of a British flag carrier by Iran amid US sanctions on its crude oil exports, a majority of stock indices fell in the Middle East, as investors seemed to be facing off a massive sell-off pressure over concerns that the geopolitical tensions may persist longer.
In alignment with a rising geopolitical tension in the Gulf, Saudi bourses had been taking heavy hits and its financials were leading the sell-offs, while a Chief portfolio manager at Al Mal Capital in Dubai said, “Britain called the action against the ship Stena Ampero in the Gulf of Hormuz on Friday a "hostile act.
Markets are following the impact of a negative global trend while highlighting geopolitical risks following Iran's detention of the British carrier”. Quoting statistics, the main index of Saudi Arabia fell by 0.8 percent on Sunday (July 21st) market wind down, while Kuwait stock exchange had wrapped up the day down by 1.2 percent, as it had also witnessed the same sell-off pressure Saudi bourses were facing.
Elsewhere in Gulf, Dubai ended the day down by 0.9 percent, while Real Estates likes of Damac Properties and Emaar Development had been leading the downfall, closing the day down by 2.3 and 1.6 percent respectively. Egypt’s benchmark index slid 0.7 percent, prodded by selling pressure of its real estate stocks, as Cairo investment alongside Real Estate Development had dropped by 4.2 percent.
Nonetheless, Oman had been the lone gainer on Sunday’s (July 21st) market wrap-up with a modest gain of 0.6 percent, while Qatar closed flatlined and Bahrain rounded off the day down by 0.2 percent.