Most stock markets in the Gulf ended higher on Tuesday as investors focused on upcoming corporate earnings, despite escalating trade tensions between the U.S. and China.
China slapped tariffs on U.S. imports in a swift response to new U.S. duties on Chinese goods, renewing a trade war between the world’s top two economies even as President Donald Trump offered reprieves to Mexico and Canada.
An additional 10% tariff on all Chinese imports into the U.S. came into effect at 12:01 a.m. ET on Tuesday (0501 GMT) after Trump repeatedly warned Beijing it was not doing enough to halt the flow of illicit drugs into the United States.
Saudi Arabia’s benchmark index gained 0.5%, led by a 1.6% rise in Al Rajhi Bank and a 1.4% increase in Saudi Telecom Company.
The kingdom’s non-oil business sector expanded at its strongest pace in just over a decade in January, driven by a surge in new orders and robust business activity, a survey showed on Tuesday.
Dubai’s main share index rose 0.7%, with toll operator Salik Company jumping 3.5% and blue-chip developer Emaar Properties advancing 0.7%.
Most Gulf markets in red on trade war fears
Dubai’s market continued its recovery following a period of uncertainty. Investor optimism about upcoming fourth-quarter earnings drove positive performance across most sectors, particularly in financials and real estate, said Milad Azar, market analyst at XTB MENA.
Abu Dhabi’s benchmark index edged higher 0.1%, supported by a 0.4% gain in Borouge after it reported a sharp rise in fourth-quarter profit.
The petrochemical firm also proposed a second-half dividend of 7.9 fils per share.
Crude prices fell as U.S. tariffs on China took effect and Beijing retaliated with its own measures, heightening trade war fears.
The Qatari index finished 0.3% higher, with Qatar Gas Transport Nakilat climbing 2.9%.
Outside the Gulf, Egypt’s blue-chip index fell 0.3%, hit by a 1.3% fall in Talaat Moustafa Group Holding.
------------------------------------------ SAUDI ARABIA added 0.5% to 12,434 Abu Dhabi rose 0.1% to 9,585 Dubai gained 0.7% to 5,219 QATAR was up 0.3% to 10,659 EGYPT eased 0.3% to 29,668 BAHRAIN lost 0.3% to 1,865 OMAN added 0.7% to 4,587 KUWAIT increased 0.6% to 8,452 ------------------------------------------
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