The Bahrain Bourse closed on a negative note yesterday, with both key indices experiencing a decline. The Bahrain All Share Index fell by 4.35 points, finishing the day at 1,942.32, while the Bahrain Islamic Index dropped by 7.24 points to close at 900.43.
Trading activity was relatively subdued, with a total of 2.16 million shares traded across 70 transactions, generating a total value of BD678,440.
Investor focus was largely on the consumer discretionary sector, which accounted for a significant portion of the day’s trades. This sector represented 39.92 per cent of the total trading value, with 730,940 shares worth BD270,810 changing hands in just six transactions.
Bahrain Duty Free Shop Complex led the market, topping the list for value traded with BD270,810, representing 39.92 per cent of the overall value. The company saw 730,940 shares traded in six transactions.
Beyon followed in second place with a traded value of BD191,460, accounting for 28.22pc of the day’s total. This involved 392,340 shares exchanged through 20 transactions.
The Bahrain Kuwait Insurance Company was the third most active stock by value, with BD65,220 in a single transaction involving 173,910 shares, making up 9.61pc of the total value.
Of the 16 companies whose shares were traded, two saw their prices rise, three experienced a decrease, and the remaining companies held steady.
Qatar’s benchmark index fell 0.3pc, dragged down by broad-based sectoral losses, with the region’s largest lender, Qatar National Bank losing 0.5pc.
Saudi Arabia’s benchmark index dipped 0.3pc hurt by broad-based fallout. Oil giant Saudi Aramco shed 0.6pc to eye its worst day in more than half a decade. Aramco secured over $16.5 billion in orders for its two-part Islamic bond, part of a planned debt raise aimed at leveraging its balance sheet amid weaker oil prices.
Dubai’s main index fell 0.6pc to its steepest level in nearly two months, hit by a 2pc drop in Emirates NBD Bank.
Abu Dhabi index eased 0.3pc, posting its fourth straight session of losses. Real estate led the decline, with Aldar Properties sliding 1.5pc. Regional investors have been navigating months of geopolitical strain, and the session’s limited market reaction suggests the strike is being viewed as a tactical disruption rather than a structural shift.
Meanwhile, Egypt’s blue-chip index advanced 0.8pc, boosted by a slowdown in annual urban inflation to 12pc in August, extending a two-year downward trend amid tight monetary policy.
Oil prices extended their rebound for a third consecutive session yesterday, driven by escalating geopolitical tensions in the Middle East and a tight supply outlook from key producers.
US crude rose 0.73pc to $63.09 a barrel and Brent rose to $66.86 per barrel, up 0.71pc on the day.
“A key catalyst for today’s gains is the heightened tensions in the Middle East, which saw an expansion of the geographic scope of the ongoing conflict,” said Exness financial markets strategist consultant Maria Agustina Patti.
Ms Patti said such events could introduce an additional risk premium into the market, as traders factor in the potential for a wider regional conflict that could disrupt energy supplies.
“While the initial price spike from the news saw a slight pullback, the underlying threat continues to support higher prices,” she added.
Bolstering the bullish sentiment was the recent decision by the Opec+ coalition to agree on a modest production increase for the upcoming month. The amount was significantly smaller than previous months’ hikes, signalling that major producers are keen on keeping the market tight and providing a fundamental floor for prices.
However, not all indicators were pointing upward. The latest data from the American Petroleum Institute (API) revealed a crude inventory build of 1.25 million barrels, marking the second consecutive week of rising inventories.
Market participants are now keenly awaiting the weekly report from the US Energy Information Administration (EIA) to confirm the supply and demand picture. The report is likely to serve as the main catalyst for the market’s move.
In currencies, the US dollar was marginally down against the yen and euro after the producer prices data cemented expectations for Fed rate cuts.
The dollar index, which measures the currency against a basket of currencies, including the yen and the euro, fell 0.2pc to 97.61, with the euro up 0.17pc at $1.1728.
Against the Japanese yen, the dollar weakened 0.06pc to 147.32. In cryptocurrencies, bitcoin gained 2.23pc to $113,983.39.
Key US Treasury yields eased back after the data, with the yield on benchmark US 10-year notes falling 2.1 basis points to 4.053pc, from 4.074pc late on Tuesday while the 30-year bond yield fell 0.8 basis points to 4.7087pc.
The two-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 1.3 basis points to 3.529pc, from 3.542pc late on Tuesday.
Gold was higher, and advanced towards its record high hit in the previous session supported by expectations for rate cuts following the softer-than-expected US inflation data.
Spot gold rose 0.57pc to $3,646.75 an ounce. US gold futures rose 0.29pc to $3,653.90 an ounce.
&uuid=(email))