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Middle East Stocks Fall With Trade Tension Spreading

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(Bloomberg) — Most stock markets in the Middle East retreated on Sunday as investors saw more volatility spilling over from trade talks between the U.S. and China.

President Donald Trump said in a tweet on Sunday it would be wise for China to “act now” to finish a trade deal with the U.S., warning that “far worse” terms would be available to them after what he predicted would be his certain re-election in 2020.

The main equity indexes in Saudi Arabia and Kuwait fell the most in the Gulf, both down more than 2%. The main gauge in Riyadh declined for the seventh consecutive session, the longest run since March 2018.

“The world is watching as the U.S. is making all the statements and emotions while the Chinese are keeping silent,” according to Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital in Abu Dhabi. As tensions escalate, “businesses that import parts from China manufacturers, and industrial and aviation sectors that export to China, would see big pressure.”

HIGHLIGHTS

  • Gauges in Dubai, Bahrain, Qatar fall between 0.6% and 1.6%, while those in Abu Dhabi, Oman and Egypt rise between 0.1% and 0.9%
  • The MSCI EM stocks index fell 4.6% last week, while a gauge tracking currencies from developing nations dropped 0.5%

MIDDLE EASTERN MARKETS:

  • The Tadawul All Share Index lost 2.1% in Riyadh on Sunday, extending losses in the past seven sessions to 7.3%. The index is still up 11% this year.
  • Banks were four of the five main contributors to the decline: Riyad Bank -5.4%; NCB -3.2%; STC -4%; Al Rajhi Bank -0.9%; Samba Financial Group -2.8%
  • Kuwait’s main index drops 2.2%, after climbing 2.9% last week.
  • Banks also impact the performance the most: NBK -3.1%; KFH -2.2% In Abu Dhabi, the ADX General Index rises 0.9%, the most in the region, after falling 3.6% last week Eshraq falls 3.6% in the third consecutive session of loss, even after saying it’s moving forward with plans to cross-list in Saudi Arabia Earnings released throughout the region: Saudi Airlines Catering, Tawuniya, Abdullah Al Othaim, Jabal Omar, Bupa, Waha Capital, Eshraq, Amanat

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