Most Gulf stocks rebounded on Wednesday, buoyed by corporate earnings announcements and optimism following U.S. President Donald Trump’s trade deal with Japan, which raised hopes for additional agreements before an impending tariff deadline.
Trump said on Tuesday that the U.S. and Japan had reached a trade deal that includes a 15% tariff on U.S. imports from Japan. It followed an agreement with the Philippines by which the U.S. will collect a 19% tariff rate on imports from there.
While the increasing imposition of tariffs around the world poses risks to global economic growth and oil demand, the recent U.S.-Japan deal helped ease investor concerns and supported oil prices.
Saudi Arabia’s benchmark index advanced 1.3%, led by a 1.1% gain in Al Rajhi Bank and a 2.3% increase in Saudi National Bank, the country’s largest lender by assets. Earlier this week, the duo reported a rise in quarterly earnings.
The Saudi stock market may experience a solid rebound if earnings releases continue to be positive and external pressures diminish, said Milad Azar, market analyst at XTB MENA.
“A potential trade deal with the European Union, with the August 1 deadline approaching, could also provide a boost.”
Most Gulf bourses fall on US tariff concerns, weaker oil
The Abu Dhabi index jumped 1.2%, with First Abu Dhabi Bank (FAB), the United Arab Emirates’ largest lender, surging 5% - its biggest intraday gain in a month - after beating second-quarter profit estimates on strong revenue growth.
Elsewhere, Bank of Sharjah soared 10%, a day after posting a sharp rise in half-yearly profit.
Among other gainers, Space42 advanced 1% after securing a $695.5 million facility to fund next-generation UAE satellites.
Dubai’s main share index finished 1% higher, snapping a three-day losing streak, led by a 2.9% jump in top lender Emirates NBD (ENBD), as the bank is slated to report its quarterly earnings on Thursday.
Qatar stock index edged 0.4% higher, touching a fresh two-and-a-half-year high, with most sectors closing in the green.
Outside the Gulf, Egypt’s blue-chip index rose 1%, continuing its ascent to record highs, with Commercial International Bank rising 1.5% following an increase in quarterly profit.
------------------------------------------ SAUDI ARABIA jumped 1.3% to 10,984 ABU DHABI rose 1.2% to 10,296 DUBAI climbed 1% to 6,086 QATAR gained 0.4% to 11,186 EGYPT added 1% to 34,125 BAHRAIN increased 0.3% to 1,950 OMAN eased 0.3% to 4,765 KUWAIT inched up 0.2% to 9,296 ------------------------------------------
Comments
Comments are closed for this article.