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Saudi Equities End Week Lower; Lebanon, Israel Agree to Ceasefire Deal

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The Tadawul Share All Share Index closed out the week lower at 0.11% in the red on Thursday as investors digested the latest updates on the Middle Eastern conflict.

Lebanon and Israel agreed to a new ceasefire deal that was mediated by the US, Reuters reported. The new agreement is set to take effect within 24 hours. However, Israel said that it will continue its attacks on Hezbollah facilities in Lebanon, with the strikes in the Southern region of the country resulting in one fatality.

Against this backdrop, the US House of Representatives voted for a war powers resolution that would potentially block President Donald Trump from continuing the conflict with Iran. The resolution will now be passed by the Senate, which must also approve the legislation.

"There was little clarity from Trump himself, who said the negotiations could complete over the weekend but could go on another two, three weeks. So tensions seemed to be ratcheting up again, and hopes for a durable peace deal continued to decline. Meanwhile, CNN reported yesterday that one of the key sticking points was monetary compensation for Iran. Otherwise, the US House of Representatives did vote against the Iran war in a 215-208 vote yesterday, after four Republicans joined with the Democrats. But in practice that won't end the military conflict, as the Senate would also need to pass it, and Trump could issue a veto as well," Deutsche Bank Research said in a note.

Back at home, Saudi Vitrified Clay Pipes (SASE:2360) ticked down 0.81% as it entered into a 15-month deal to supply vitrified clay pipes, fittings, and accessories for a sewage networks project. The equipment will be used for the second phase of the Sabya Villages project.

Meanwhile, the board of Marketing Home Group for Trading Co. (SASE:4194), d/b/a Build Station, resolved to distribute a dividend of 2.25 Saudi riyals per share for the first quarter. It will pay the dividend on June 16 to shareholders on record as of June 8. Shares of the trade and development company surged 9.98% at closing.

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Emirati Stocks Rebound on Lebanon-Israel Ceasefire

Stocks in the United Arab Emirates recovered from two straight days of losses on Thursday as the ceasefire agreement between Lebanon and Israel sparked investors' hopes for a broader peace deal between the US and Iran.At the close of trading, the FTSE ADX General Index was little changed at 0.03% in the green, while the DFM General Index gained 0.564%."The geopolitical headlines have become slightly more positive this morning, with oil prices falling back after the US said that Israel and Lebanon agreed to a ceasefire. That ceasefire is conditional on Hezbollah also stopping fighting, but in theory, the news helps to take out a key sticking point in the US-Iran talks that was holding up a deal," Deutsche Bank Research said.Despite the US-brokered ceasefire, Israel attacked southern Lebanon on Thursday, Reuters reported, citing security sources. Israeli Minister of Defense Israel Katz said that the strikes would continue for the time being without withdrawing forces from the region.Closer to home, the Abu Dhabi government implemented a temporary freeze on all rent increases, setting the annual rental cap increase to 0% across all residential and industrial properties.Over to corporates, First Abu Dhabi Bank (ADX:FAB) shares closed 0.37% higher as it partnered with Water.org and its affiliated impact investment manager WaterEquity to invest in the WaterEquity Everspring Fund. The investment is part of the lender's efforts to advance water and sanitation security globally.Meanwhile, Dubai-listed National Central Cooling Co. (DFM:TABREED), d/b/a Tabreed, stocks closed the session 1.93% higher. The district cooling services company named Atef Mohamed Awadh AlBreiki as its new chief asset management officer, effective immediately.

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Exchange-Traded Funds Lower as US Equities Fall After Midday

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Swiss Market Index Drops as US-Iran Ceasefire Hopes Fade

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