Most stock markets in the Gulf ended higher yesterday after US President Donald Trump suggested he might grant exemptions on car-related levies already in place.
Trump said on Monday he was considering a modification to the 25 per cent tariffs on car and vehicle parts imports from Mexico, Canada and other places.
He said car companies “need a little bit of time because they’re going to make them here”. The US recently exempted smartphones, computers and certain electronics from Trump’s ‘reciprocal’ tariffs, but probes into semiconductor imports have intensified, with Trump set to announce tariff rates soon.
Saudi Arabia’s benchmark index rose 0.2pc, with Al Rajhi Bank rising 0.5pc and telecoms firm Saudi Telecom Company increasing 2.3pc.
The market has solid fundamentals conducive to recovery should sentiment improve, although trade tensions and low oil prices persist as notable risks, said Milad Azar, market analyst at XTB MENA.
Dubai’s main share index closed 0.4pc higher, with blue-chip developer Emaar Properties advancing 2.1pc.
In Abu Dhabi, the index added 0.6pc. Oil prices – a catalyst for the Gulf’s financial markets – inched down after the International Energy Agency followed Opec in slashing its oil demand forecast, though price falls were limited by Trump’s suggestion of new tariff exemptions.
The Qatari index climbed 0.7pc, led by a 1.3pc gain in Qatar Islamic Bank.
Outside the Gulf, Egypt’s blue-chip index closed flat. Egypt’s central bank is expected to cut overnight interest rates by 200 basis points tomorrow, but analysts say tariff uncertainty is likely to make it cautious despite plunging Egyptian inflation, a Reuters poll shows.
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