Arab equities opened higher, African benchmarks steadied and European shares slipped on Monday as investors weighed falling oil prices against the threat of stronger US sanctions on Iran. Gulf banks and property companies led the advances, while technology shares placed early pressure on Europe’s major markets.
Saudi Arabia leads Arab markets higher
Saudi Arabia’s benchmark index advanced by 0.5 per cent, extending its winning run to a fifth consecutive session. Information technology, banking and materials shares provided the strongest support.
Al Rajhi Bank gained 1.1 per cent, Saudi Basic Industries rose 1.4 per cent and Arab Sea Information System advanced by 2.9 per cent. The gains indicated that domestic company performance continued to attract buyers despite uncertainty surrounding oil and regional security.
Dubai’s index added 0.4 per cent, supported by a 0.7 per cent rise in Emaar Properties and a 2.4 per cent advance for ALEC Holdings. Abu Dhabi gained 0.2 per cent as Two Point Zero rose 3.9 per cent and Alpha Dhabi Holding climbed 1.7 per cent. Qatar traded close to unchanged.
African markets find selective support
South Africa’s FTSE/JSE Top 40 opened at approximately 110,387 points before rising by around 0.2 per cent to 110,596. Telecommunications and mining companies were among the leading performers.
MTN Group gained more than 4 per cent, Vodacom advanced by approximately 2.4 per cent and BHP rose by around 1.4 per cent. The strength in mining shares followed an increase in gold prices as the US dollar weakened.
Technology-linked companies moved in the opposite direction. Prosus declined by about 2.5 per cent and Naspers lost more than 2 per cent, reflecting the cautious international mood towards highly valued technology assets.
In Egypt, the EGX30 edged approximately 0.1 per cent higher to around 55,380 points. The index remained close to its recent record level, although high interest rates and annual inflation of almost 15 per cent continue to influence investor sentiment.
European technology shares weigh on the opening
The pan-European STOXX 600 declined by 0.1 per cent to 653.40 during early trading. Technology shares led the retreat as investors adopted a more cautious position before Nvidia publishes its quarterly results on Wednesday.
Energy companies fell by 0.4 per cent as Brent crude moved towards $92 per barrel. Basic-resources shares provided the main positive contribution, rising by 0.8 per cent as gold and selected metals strengthened.
The opening demonstrated the different effects of lower oil prices. They reduced earnings expectations for European energy producers but offered some relief to industries and consumers facing elevated fuel and transport costs.
Iran sanctions dominate the global agenda
Investors are waiting for details of a new US sanctions package targeting Iran and potentially its international trading partners. Iran has warned that it could attempt to stop Gulf oil exports if economic pressure intensifies.
That threat remains particularly important for Arab markets because energy revenue supports government spending, investment and corporate activity throughout the Gulf. However, oil prices moved lower on Monday as traders took profits following last week’s strong increase.
Gold benefited from the uncertainty, supporting mining companies in South Africa and Europe.
Central banks return to focus
Markets will monitor Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday for guidance on American interest rates. Higher US borrowing costs can place pressure on global equities, currencies and international capital flows.
Monday’s opening therefore revealed a divided picture: Gulf investors remained willing to buy domestic banks and property companies, African markets found support from telecommunications and mining, while Europe adopted a more defensive position ahead of major technology earnings and renewed geopolitical uncertainty.
Newshub Editorial in Europe, Africa and the Arab world – 24 August 2026
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