Gulf equities were little changed in early trade on Tuesday as investors cautiously greeted a trade agreement between the U.S. and the European Union, while lacklustre second-quarter earnings weighed on sentiment.
The weekend’s framework trade deal, which European Commission President Ursula von der Leyen described as the best the bloc could get, will see the U.S. imposing a 15% import tariff on most EU goods.
Initial relief over the deal - President Donald Trump had been threatening a 30% levy - quickly soured when set against the 1% to 2% tariff in place before Trump returned to the White House.
Trump’s tariff moves continue to raise concerns over global growth, with any slowdown in trade or consumption threatening energy demand and the fiscal stability of oil-dependent Gulf economies.
Saudi Arabia’s benchmark index eased 0.3%, pressured by a string of disappointing earnings across key sectors.
Arabian Drilling plunged more than 9% after posting a sharp drop in second-quarter profit, well below analysts’ expectations. The company also announced a suspension of cash dividend payments for 2025.
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Arabian Pipes fell 6.6% after missing quarterly estimates, while Jamjoom Pharmaceuticals dropped more than 3.5% as its shares began trading ex-dividend.
Dubai’s benchmark index rose 0.3% to hit a 17-1/2-year high, poised for a fifth consecutive session of gains. The rally was driven by a 2.4% jump in Emirates Central Cooling Systems, while Dubai Taxi Company climbed nearly 6% after its second-quarter results topped market expectations and it announced a higher half-year dividend than last year.
The Abu Dhabi index was flat as mixed corporate earnings offset optimism from the previous week’s strong performance that had been expected to sustain momentum.
Aldar Properties slipped nearly 3% after announcing a marginal second-quarter revenue decline, despite reporting a record order backlog of 62.3 billion dirhams as of the end of June, while IHC-owned investment firm Multiply Group sank more than 4% as its second-quarter profit halved year-on-year.
Qatar’s benchmark index edged down 0.2%, as traders locked in profits following a recent rally, with most sectors trading in the red, led by a 1.4% decline in Qatar Islamic Bank.
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