Mideast stocks get a mauling as Soleimani death raises tension

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DUBAI: The US killing of Iran’s most senior military commander reverberated through Middle Eastern markets, sending stocks into retreat and setting the tone for what’s likely to be a volatile week. All the region’s major equity gauges fell on Sunday (Jan 4).

Mourners carrying the coffins of Iran's Gen. Qassem Soleimani and Abu Mahdi al-Muhandis, deputy commander of Iran-backed militias at the Imam Ali shrine in Najaf, Iraq. Iran has vowed"harsh retaliation" for the U.S. airstrike near Baghdad's airport that killed Teheran's top general. - AP

"Investors who were hoping for lower geopolitical tension in the Middle East and North Africa in 2020 got their hopes dashed on the second day of the year,” said Mohammed Ali Yasin, chief strategy officer at Abu Dhabi-based Al Dhabi Capital Ltd."2020 will continue to be a year of high geopolitical tensions.”

Aramco shares were facing their biggest test since the initial public offering less than a month ago. The stock dropped 1% to 34.80 riyals on Sunday, headed for its lowest close since the Dec. 11 listing.

 

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