By Ateeq Shariff
Stock markets in the Gulf ended mixed on Monday, as investors weighed positive corporate earnings against concerns over U.S. trade policy changes.
The European Union is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington fade, according to EU diplomats.
Investors had been hoping for some progress in trade talks ahead of U.S. President Donald Trump's August 1 tariff deadline; Commerce Secretary Howard Lutnick is still confident a deal could be reached with the EU.
Saudi Arabia's benchmark index TADAWUL:TASI gained 0.2%, ending a nine-day losing streak, led by a 1.6% gain in sharia-compliant lender Al Rajhi Bank TADAWUL:1120 and a 1.2% increase in Saudi National Bank TADAWUL:1180, as the duo reported a rise in quarterly net profit.
But International Petrochemical Company TADAWUL:2310 declined 5.7%, after the firm turned to losses in the second quarter.
If upcoming earnings reports are broadly positive, the market may rebound, Osama Al Saifi, managing director for MENA at Traze, said.
Dubai's main share index DFM:DFMGI dropped 0.8%, easing from a multi-year high, hit by a 3.7% slide in top lender Emirates NBD DFM:EMIRATESNBD.
Profit-taking weighed on the market, with noticeable pressure on the financial sector, Saifi said.
"Investors could secure their profits after a long period of strong momentum ahead of the Q2 earnings releases."
Air Arabia DFM:AIRARABIA leapt 4.8% to a fresh record high after securing a bid to operate a new Saudi low-cost national airline, set to launch by 2030.
In Abu Dhabi, the index ADX:FADGI fell 0.2%.
Oil prices dipped slightly, with the latest European sanctions on Russian oil expected to have minimal impact on supplies while U.S. tariffs ensure demand concerns remain.
The Qatari index QSE:GNRI closed 0.7% higher, with the Gulf's biggest lender Qatar National Bank QSE:QNBK gaining 1.5%.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 edged 0.2% higher, hitting a new record high.
SAUDI ARABIA
TADAWUL:TASI rose 0.2% to 10,981
Abu Dhabi
ADX:FADGI fell 0.2% to 10,262
Dubai
DFM:DFMGI dropped 0.8% to 6,045
QATAR
QSE:GNRI gained 0.7% to 11,022
EGYPT
EGX:EGX30 added 0.2% to 34,130
BAHRAIN
BAHRAIN:BHBX was down 0.3% to 1,938
OMAN
(.MSX30) rose 1.5% at 4,743
KUWAIT
(.BKP) was up 0.1% to 9,302