Tadawul Shares Extend Losses as US, Iran Exchange Fresh Strikes
The Tadawul All Share Index continued its losing streak on Wednesday, falling 0.79%, as the escalating geopolitical tensions between the US and Iran dampened investor sentiment.The US and Iran's fresh exchange of strikes dominated global headlines. The US targeted the Islamic Revolutionary Guard Corps' air defences, radar systems and communication sites, among others.Iran, on the other hand, launched attacks on US airbases, regional headquarters and other US assets in Bahrain, Jordan, Kuwait and Iraq, media reports said."Developments in recent days brought risks to regional oil supplies back into focus. We've seen oil flow through the Strait of Hormuz despite the stalemate between the US and Iran, but rising tensions clearly put crossings at risk," ING said. "Given disruptions to Middle East and Russian diesel exports, and with little sign of an imminent recovery, middle distillate cracks are likely to remain highly elevated and volatile, particularly as we move towards seasonally stronger demand. The global refining system has little slack to make up for the disruptions we are currently seeing."Back at home, Gulf General Cooperative Insurance (SASE:8260) shares ticked up 0.47% as it disclosed plans to decrease its capital to 124 million Saudi riyals, then subsequently raise it to 300 million riyals.Meanwhile, Arab National Bank (SASE:1080) launched its US-denominated additional tier 1 capital sukuk offering to eligible investors. Shares closed 0.63% higher.Analysts are anticipating the release of the Riyad Bank PMI for August on Thursday. The index stood at 53.1 in July, down from 53.3 in June.
