Early trade on Tuesday in major Gulf stock markets was mixed, with investors awaiting corporate earnings and facing lower oil prices, and the Saudi index was down on profit-taking following its recent surge.
The benchmark index of Saudi Arabia slipped 0.1 percent following an increase of 3.3 percent last week, caused by the government’s report that it would open the capital market to foreign investors, starting next month.
All contributing to the index were a 0.3 percent decline in Al Rajh Bank and a 0.4 percent decline in Saudi National Bank, the largest lender by assets in the kingdom.
However, the oil prices, which have driven the Gulf financial markets, were not significantly affected as traders balanced the tariff threats of President Donald Trump against Europe due to his Greenland purchase push, while a softer dollar and stronger-than-expected data from leading importer China helped support prices.
The index dropped by 0.1 percent in Abu Dhabi, and ADNOC Gas slipped by 0.3 percent. Abu Dhabi Islamic Bank, the biggest Sharia-compliant bank in the emirate, fell by 0.2 percent before its fourth-quarter earnings report is published on Wednesday.
Meanwhile, India signed a $3 billion LNG agreement with the UAE on Monday, making it the UAE’s top customer. As the two nations continue to enhance trade and military relations, ADNOC Gas will deliver 0.5 million metric tons per year of gas to Hindustan Petroleum in 10 years.
Dubai’s main share index rose 0.4 percent, led by a 1 percent surge in utility firm Dubai Electricity and Water Authority and a 0.3 percent increase in blue-chip developer Emaar Properties.
