Most major stock markets in the Gulf rose in early trade on Wednesday in line with Asian shares as investors await clarity on U.S. President Donald Trump’s trade policy ahead of looming tariffs.
Trump’s recent statements have given traders a glimmer of hope for flexibility in trade policies. On Monday, he hinted that not all tariffs would kick in on April 2 and that some countries might receive exemptions, although he didn’t provide details.
However, Trump also escalated his trade war by introducing 25% secondary tariffs on countries that buy oil or gas from Venezuela. This move initially drove oil prices up, but the impact was later mitigated by the relief sparked by the U.S.-brokered Black Sea maritime security deals in the Ukraine conflict.
Saudi Arabia’s benchmark index gained 0.7%, led by a 1.6% rise in Al Rajhi Bank and a 0.8% increase in oil giant Saudi Aramco.
Most Gulf markets fall on US tariff uncertainty
Oil prices - a catalyst for the Gulf’s financial markets - edged higher on supply concerns with the U.S. stepping up efforts to limit Venezuelan and Iranian oil exports, while a bigger-than-expected drop in U.S. crude inventories also lent support.
The Qatari benchmark rose 0.4%, with the Gulf’s biggest lender Qatar National Bank gaining 0.6% and petrochemical maker Industries Qatar increasing 0.8%.
In Abu Dhabi, the index added 0.2%.
Dubai’s main share index, however, fell 0.5%, hit by an 8.9% plunge in budget airliner Air Arabia and a 3.7% slide in Emirates Integrated Telecommunications as the duo traded ex-dividend.
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