Mideast Stocks: Gulf bourses end mixed on trade war worries

PHOTO
A woman uses her camera near a trading board at the Dubai Stock Exchange in the Dubai World Trade Center. Ahmed Jadallah, Reuters Image for illustrative purposes.

Stock markets in the Gulf closed mixed on Wednesday after U.S. President Donald Trump ordered a probe into potential new tariffs on U.S. critical mineral imports and amid concerns about the economic impact of the U.S.-China trade war.

Trump's probe was viewed as an attempt to push back on leading critical minerals producer China, and comes on top of reviews into pharmaceutical and chip imports. Saudi Arabia's benchmark index added 0.2%, helped by a 0.5% rise in Al Rajhi Bank and a 1.5% increase in top lender Saudi National Bank.

Separately, United Carton Industries Company on Tuesday announced plans to float a 30% stake on the Saudi Exchange's main market, in what would be the first initial public offering since trade tensions sparked a selloff in the kingdom's equity markets.

Dubai's main share index dropped 0.5%, weighed down by a 1.2% slide in blue-chip developer Emaar Properties and a 2% decline in top lender Emirates NBD. Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on U.S. imports in an intensifying trade war between the world's two biggest economies that markets fear will lead to a global recession.

In Abu Dhabi, the index eased 0.3%. On the other hand, oil prices rose 1%, reversing early losses as the market took a bullish view on China's stance on potential trade talks with the United States, though gains were capped by continuing fears that the trade war will curb energy demand.

The Qatari index fell 0.2%, with Qatar Islamic Bank retreating 1%.

Outside the Gulf, Egypt's blue-chip index lost 0.5%, with EFG Holding falling 2%. Meanwhile, Egypt's central bank is expected to cut overnight interest rates by 200 basis points on Thursday, but analysts say uncertainty about the impact of U.S. tariffs on the global economy is likely to make it move cautiously despite plunging Egyptian inflation, a Reuters poll shows.