Most stock markets in the Gulf ended lower on Wednesday as investors remained cautious, given the uncertainty over U.S. import tariffs and the Federal Reserve Chair Jerome Powell signalling a patient path for rate cuts.
Donald Trump’s trade advisers were finalizing plans on Wednesday for the reciprocal tariffs the U.S. president has vowed to impose on every country that charges duties on U.S. imports, ratcheting up fears of a widening global trade war.
Saudi Arabia’s benchmark index (.TASI) fell 0.3%, hit by a 1.8% fall in Saudi Basic Industries Corp (2010.SE) as the petrochemical maker traded ex-dividend.
Dubai’s main share index (.DFMGI) dropped 0.6%, weighed down by a 4% decline in sharia-compliant Dubai Islamic Bank (DISB.DU), despite reporting a rise in annual profit.
The Dubai bourse snapped two sessions of gains, influenced by recent earnings releases, said Joseph Dahrieh, managing principal at Tickmill.
However, the Dubai bourse maintains the potential for further upside given its solid fundamentals and generally strong earnings releases this quarter, added Dahrieh.
In Abu Dhabi, the benchmark index (.FTFADGI) nudged 0.2% higher, with Aldar Properties (ALDAR.AD) closing 1.1% higher, rising for a fourth consecutive session.
Aldar on Monday reported a fourth-quarter profit of 1.9 billion dirhams ($517.32 million), up 37% year-on-year.
However, Lulu Retail Holding (LULU.AD) plunged 9.6%, extending losses from the previous session, after a steep decline in quarterly profit.
In Qatar, the index (.QSI) was down 0.3%, with petrochemical firm Industries Qatar (IQCD.QA) retreating 0.9%.
The U.S. Consumer Price Index (CPI) report, due at 1330 GMT, is now on investors’ radar.
Markets have been scaling back expectations for Fed rate cuts this year, largely expecting the U.S. central bank to hold rates steady at its March and May meetings.
On Tuesday, Powell said the economy is in a good place and the Fed isn’t rushing to cut interest rates further, but is prepared to do so if inflation drops or the job market weakens.
Outside the Gulf, Egypt’s blue-chip index (.EGX30) added 0.3%.
($1 = 3.6728 UAE dirham)
Source: Reuters.com