Gulf Stock Markets Mixed Amid Trade Uncertainties

Stock markets in the Gulf region presented a mixed performance on Thursday, influenced by ongoing uncertainties related to U.S. tariff policies and persistent concerns about a potential economic slowdown.

Market participants are closely monitoring any advancements in negotiations between the U.S. administration, led by President Donald Trump, and its trading counterparts, particularly the current trade discussions with Japan. The future of potential dialogues with China continues to be a significant point of concern.

The Saudi Arabian benchmark index experienced a decline of 0.7%, primarily affected by a 0.5% decrease in Al Rajhi Bank’s value and a 2.1% drop in the Saudi Arabian Mining Company’s shares.

George Pavel, General Manager at Naga.com Middle East, suggested that the market might remain sensitive to developments concerning external elements, notably trade-related tensions.

“However, the forthcoming releases of first-quarter earnings reports could serve as a possible impetus, shaping the market’s trajectory and perhaps offering some degree of support.”

Dubai’s primary share index recovered from earlier losses to close 0.2% higher, buoyed by a 6.8% surge in Parkin Company’s value.

Investors were also considering remarks made by Federal Reserve Chair Jerome Powell, who cautioned about the potential for slower economic expansion and increasing inflation due to tariffs.

Regional Market Performance

In Abu Dhabi, the index remained unchanged at the close.

According to Pavel, despite some stabilization in oil prices following a recent downturn, they remained at comparatively low levels, providing only marginal assistance to the market.

Oil prices saw a rise to a two-week high amidst subdued trading activity ahead of the Easter holiday period, following the imposition of new U.S. sanctions intended to restrict Iranian oil exports, which amplified supply concerns.

The Qatari index decreased by 0.6%, with Qatar Islamic Bank registering a loss of 2.8%.

Outside the Gulf region, Egypt’s blue-chip index saw a slight increase of 0.1%, with Commercial International Bank gaining 0.9%.