Mideast Stocks: Most Gulf markets retreat on weak oil prices

Telecom Egypt SAE

28/12/2025 13:00

By Ateeq Shariff

Dec 28 (Reuters) - Most stock markets in the Gulf ended lower on Sunday in response to Friday's fall in oil prices amid thin holiday-season trading.

Oil prices - a catalyst for the Gulf's financial markets - settled more than 2% lower on Friday as investors weighed a looming global supply glut, while also keeping an eye on Ukraine peace deal talks on Sunday between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump.

Despite a rebound fuelled by recent supply issues from the December 16 near-five-year lows, oil is on pace for its biggest annual loss since 2020, with Brent crude down 19% year-to-date as increased production sparks worries of an impending oversupply next year.

Saudi Arabia's benchmark index .TASI dropped 1%, with Al Rajhi Bank  1120.SE losing 1.1% and oil behemoth Saudi Aramco 2222.SE retreating 0.8%.

Lower oil prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.

In Qatar, the index .QSI fell 0.4%, with the Gulf's biggest lender Qatar National Bank  QNBK.QA dropping 1.1%.

Outside the Gulf, Egypt's blue-chip index .EGX30 gained 0.9%, with Telecom Egypt  ETEL.CA rising 2.2%.

Egypt’s central bank announced a 100 basis point cut to its overnight interest rates on Thursday, according to a statement from the monetary policy committee.

Saudi Arabia
.TASI declined 1% to 10,417
Qatar
.QSI dropped 0.4% to 10,763
Egypt
.EGX30 rose 0.9% to 41,605
Bahrain
.BAX added 0.2% to 2,068
Oman
.MSX30 was down 0.3% to 5,940
Kuwait
.BKP was flat at 9,591

 (Reporting by Ateeq Shariff in Bengaluru; Editing by Andrew Cawthorne)

 ((AteeqUr.Shariff@thomsonreuters.com; +918061822788))