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Tadawul Shares Decline on Monday as Geopolitical Tensions Flare

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Saudi Exchange-traded shares started June lower as the geopolitical developments between the US and Iran pushed the Tadawul All Share Index 0.62% in the red on Monday.

The US and Iran traded strikes on each other's military targets. The US reportedly attacked the Middle Eastern country's drones, air defenses, and ground control station. Meanwhile, Iran struck a US military air base as a retaliatory attack.

Also dampening sentiment is Israel's military action in Beirut, Lebanon. Israeli Prime Minister Benjamin Netanyahu said that the order was done to defend Israel from Hezbollah attacks.

"For now, it seems Mr Trump is still deciding on whether the current negotiations between the two nations satisfy his demands. He has been surprisingly quiet over the weekend which indicates things perhaps coming close to a head. Meanwhile Israel and Hezbollah are trading attacks again which complicates matters even if fresh ceasefire proposals are being worked on. We could have said this a week ago, but it really feels like the next few hours and days will be critical," Deutsche Bank Research said in a note.

Data from the Saudi Central Bank showed that the country's April M3 money supply rose 10% year over year, following a 8.2% growth in March. Meanwhile, private bank lending grew 7.2% in the reporting month, compared with the 7.4% increase in the prior month.

On the corporate front, Ladun Investment (SASE:9535) shares ticked up 1.74% as it plans to form a closed-ended private real estate investment fund with Al-Ayuni Investment and Contracting Co. for the Khalidiyah informal settlement redevelopment project in Makkah.

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