Gulf Markets Mostly Higher as Asia Gains; Saudi Index Falls on Weak Earnings

Post by : Saif Nasser

Most Gulf stock markets rose on Tuesday morning, following the trend in Asian markets. Investors were encouraged by the possibility of easing trade tensions between the U.S. and China, two of the world’s largest economies. However, Saudi Arabia’s stock market fell after some companies reported weaker-than-expected profits.

Dubai and Abu Dhabi Markets Rise

Dubai’s main stock index rose 0.3% in early trading. The top-performing stock was Emirates NBD, the largest bank in Dubai, which gained 1.9%. The bank announced it would buy a 60% stake in India’s RBL Bank for $3 billion, marking the largest cross-border deal in India’s financial sector.

In Abu Dhabi, the index also rose 0.3%, helped by a gain in Multiply Group, an investment company. Multiply Group’s rise followed a decision by its parent company, International Holding Company, to buy the investment platform 2PointZero and food company Ghitha Holding through a share swap deal.

Saudi Market Drops on Poor Corporate Results

Saudi Arabia’s main stock index, Tadawul All Share Index (TASI), fell 0.6%, mainly due to Yamama Cement Company, which plunged 9.6% after reporting a 63% drop in third-quarter profits. This was the company’s largest one-day loss since May 2020.

Another major company, Al Rajhi Bank, also lost 0.5% despite reporting a strong third-quarter profit. Analysts noted that the bank’s quarterly profit growth remained in the single digits, which disappointed some investors.

Oil Prices and Global Concerns

Oil prices, a major factor for Gulf economies, fell for a second consecutive day. Traders are concerned about the impact of the U.S.-China trade tensions on global oil demand. A slower demand for oil could affect Gulf countries, which rely heavily on oil revenue for economic growth.

Analysts said that while Gulf markets are generally following the positive trend in Asia, weak corporate earnings in Saudi Arabia and uncertain global trade conditions could continue to create volatility. Investors are keeping a close eye on earnings reports and oil price movements for further market direction.

The Gulf stock markets’ performance reflects a mix of regional investment opportunities, cross-border deals, and global economic uncertainties, showing how connected local markets are to international developments.