Equity markets in the Middle East were mixed in the first session of September as investors kept their focus on developments in the trade war between China and the US.
President Donald Trump’s administration slapped tariffs on roughly $110 billion in Chinese imports on Sunday, marking the latest escalation in a trade war that’s inflicting damage across the world economy, and China retaliated.
Most equity markets in the Middle East retreated last week amid escalating tensions, as several economies in the region including Saudi Arabia have the Asian country as their biggest trading partner.
“The Chinese economy has shown clear signs of slowing due to the trade war, and there has been collateral damage,” Stephen Stanley, chief economist at Amherst Pierpont Securities, wrote in a note.
Middle Eastern markets update:
- Saudi Arabia’s Tadawul All Share Index lost 0.6% as of 10:25am in Riyadh. Index dropped 5% last week, extending decline in August to 8.2%.
- Abu Dhabi’s ADX General Index fell 0.4%, while Dubai climbed as much as 0.3% in volatile trading. Telecom operator Etisalat falls 1.3% and contributes the most to the decrease in Abu Dhabi.
- Kuwait’s gauge bucks the trend to rise as much as 1%, boosted by lenders. Ahli United Bank and Kuwait Finance House gain 2.1% and 0.7%, respectively, after AUB said that due diligence for a merger with KFH has been completed.
- Stock markets in Oman and Bahrain are closed due to a local holiday.
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