March 24 (Reuters) - Gulf markets were mixed on Monday with uncertainty about U.S. President Donald Trump's next tariff move and heightened regional geopolitical tensions affecting some stocks.
Trump's reciprocal tariffs, due to take effect on April 2, are expected to fuel inflation and stunt economic growth. However, Trump suggested on Friday that there may be some flexibility regarding tariffs, potentially softening their impact.
Saudi Arabia's benchmark index gained 0.7%, with Al Rajhi Bank rising 1.4% and Saudi Telecom Company increasing 1.6%.
Elsewhere, Umm Al Qura for Development and Construction surged 30% - the maximum daily limit allowed for newly-listed stocks during their first three days of trading - to 19.5 riyals in its debut trading.
"The introduction of Umm Al Qura added further positive sentiment to the market," said Hassan Fawaz, chairman & founder of GivTrade. "However, for a sustainable reversal, the market will need reduced geopolitical tensions, less pressure from external factors, and a recovery in oil prices."
Dubai's main share index added 0.3%, with toll operator Salik Co closing 2.6% higher.
Meanwhile, escalating geopolitical concerns led investors to exercise caution and retreat from riskier investments.
An Israeli airstrike at a hospital in Gaza on Sunday killed five people, including a Hamas political leader, Palestinian medics and Hamas said.
After two months of relative calm in the war, Gazans have again been fleeing for their lives after Israel effectively abandoned a ceasefire.
In Abu Dhabi, the share index finished flat.
Oil prices - a catalyst for the Gulf's financial markets - climbed in choppy trade as investors weighed the impact of fresh U.S. sanctions on Iranian exports against talks to end the war in Ukraine.
The Qatari index dropped 0.8%, hit by a 0.8% fall in the Gulf's biggest lender Qatar National Bank.
Outside the Gulf, Egypt's blue-chip index fell 0.4%, with Abu Qir Fertilizers and Chemical Industries retreating 2.2%.
|
SAUDI ARABIA |
(.TASI) rose 0.7% to 11,778 |
|
Abu Dhabi |
(.FTFADGI) was flat at 9,370 |
|
Dubai |
(.DFMGI) rose 0.3% to 5,116 |
|
QATAR |
(.QSI) fell 0.8% to 10,186 |
|
EGYPT |
(.EGX30) lost 0.4% to 31,811 |
|
BAHRAIN |
(.BAX) eased 0.7% to 1,952 |
|
OMAN |
(.MSX30) down 0.1% to 4,388 |
|
KUWAIT |
(.BKP) gained 1% to 8,628 |
Reporting by Ateeq Shariff in Bengaluru; Editing by Susan Fenton
Source: Reuters