Gulf stock markets showed mixed results in early trade as earnings and trade tensions shaped investor sentiment. Investors remained cautious ahead of the U.S.-China trade talks expected to take place this weekend.
U.S. President Donald Trump said China initiated the talks, but he refused to reduce tariffs to start negotiations. This hesitation added uncertainty and limited optimism in global markets, including the Gulf stock market.
In Saudi Arabia, the main index slipped by 0.3%. Saudi Arabian Mining Company led the losses with a 1.6% drop, and ACWA Power declined 1.1% after posting a quarterly net profit of 427.2 million riyals.
Although profit increased compared to last year, it fell 15% from the previous quarter. This performance discouraged investors and pressured the energy sector. Additionally, the Middle East Healthcare Company plunged 7.5%.
The firm had posted higher quarterly profits, yet investors reacted negatively, possibly due to valuation concerns. This sharp fall pulled the index lower and weakened overall confidence in healthcare stocks.
In Dubai, Gulf stock markets the main share index also dropped 0.3%. Emaar Properties, one of the city’s biggest developers, declined 0.7% during the session. This added to the downward pressure in Dubai’s real estate sector.
Conversely, Abu Dhabi’s index gained 0.3%. ADNOC Drilling surged 2.5% after reporting a 25% rise in first-quarter profit. This result boosted investor confidence and supported broader gains in the capital’s market.
Likewise, Gulf stock markets Qatar’s index rose 0.7%. Qatar Islamic Bank led the rise with a 1.5% increase, driving gains in the financial sector.
Elsewhere, traders monitored signals from the U.S. Federal Reserve. The Fed held interest rates steady but warned of rising inflation and unemployment risks.
Because Gulf stock market currencies mostly peg to the U.S. dollar, Fed decisions strongly affect monetary policy in the region.
The UAE Central Bank kept its base rate unchanged at 4.40%, reflecting ongoing economic caution.
Lastly, Trump hinted at easing microchip export rules for some Gulf nations. This potential policy shift could influence future tech investments across Gulf stock markets.
