Business
Most Gulf stocks rebound on earnings, US-Japan trade deal
Most Gulf stocks rebound on earnings, US-Japan trade deal
About this update from Al Rajhi Bank
By Amna Mariyam Most Gulf stocks rebounded on Wednesday, buoyed by corporate earnings announcements and optimism following U.S. President Donald Trump's trade deal with Japan, which raised hopes for additional agreements before an impending tariff deadline.Trump said on Tuesday that the U.S. and Japan had reached a trade deal that includes a 15% tariff on U.S. imports from Japan. It followed an agreement with the Philippines by which the U.S. will collect a 19% tariff rate on imports from there.While the increasing imposition of tariffs around the world poses risks to global economic growth and oil demand, the recent U.S.-Japan deal helped ease investor concerns and supported oil prices.Saudi Arabia's benchmark index TADAWUL:TASI advanced 1.3%, led by a 1.1% gain in Al Rajhi Bank TADAWUL:1120 and a 2.3% increase in Saudi National Bank TADAWUL:1180, the country's largest lender by assets. Earlier this week, the duo reported a rise in quarterly earnings.The Saudi stock market may experience a solid rebound if earnings releases continue to be positive and external pressures diminish, said Milad Azar, market analyst at XTB MENA."A potential trade deal with the European Union, with the August 1 deadline approaching, could also provide a boost."The Abu Dhabi index ADX:FADGI jumped 1.2%, with First Abu Dhabi Bank (FAB) ADX:FAB, the United Arab Emirates' largest lender, surging 5% - its biggest intraday gain in a month - after beating second-quarter profit estimates on strong revenue growth. Elsewhere, Bank of Sharjah ADX:BOS soared 10%, a day after posting a sharp rise in half-yearly profit.Among other gainers, Space42 ADX:SPACE42 advanced 1% after securing a $695.5 million facility to fund next-generation UAE satellites.Dubai's main share index DFM:DFMGI finished 1% higher, snapping a three-day losing streak, led by a 2.9% jump in top lender Emirates NBD (ENBD) DFM:EMIRATESNBD, as the bank is slated to report its quarterly earnings on Thursday. Qatar stock index QSE:GNRI edged 0.4% higher, touching a fresh two-and-a-half-year high, with most sectors closing in the green.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 rose 1%, continuing its ascent to record highs, with Commercial International Bank EGX:COMI rising 1.5% following an increase in quarterly profit.SAUDI ARABIATADAWUL:TASI jumped 1.3% to 10,984ABU DHABIADX:FADGI rose 1.2% to 10,296DUBAIDFM:DFMGI...