Most Gulf markets in black as investors weigh Trump win

By Ateeq Shariff

(Reuters) – Most stock markets in the Gulf ended higher on Thursday in line with global shares as investors navigated the implications of a second Donald Trump presidency.

Trump recaptured the White House with a sweeping victory on Wednesday as tens of millions of Americans looked past his criminal charges and divisive rhetoric to embrace a leader who, if he carries out his campaign promises, will test the limits of presidential power.

Saudi Arabia’s benchmark index gained 0.3%, with aluminium products manufacturer Al Taiseer Group rising 1.2% and Al Rajhi Bank increasing 2%.

On the other hand, Saudi Arabian Company declined 4.1%, after the miner swung to quarterly profit but saw a sequential decrease in earnings.

Trump’s proposed import tariffs might strengthen the U.S. dollar through reduced spending on foreign goods, benefiting Gulf Cooperation Countries’ (GCC) currencies, said Vijay Valecha, chief investment officer, Century Financial.

A stronger dollar from Trump’s protectionist policies would also increase foreign investment in the GCC region, added Valecha.

Dubai’s main share index gained 0.6%, led by a 4% jump in Emirates Central Cooling Systems Corp (Empower), which saw an increase in revenue despite reporting a fall in quarterly profit.

However, Dubai Taxi Company, the largest taxi operator in the Gulf city state by market share, declined 4.1% following a slide in quarterly profit.

In Abu Dhabi, the index reversed early losses to close 0.4% higher, helped by a 0.6% increase in conglomerate International Holding Co (IHC).

IHC – Abu Dhabi’s most valuable company – reported a third-quarter net profit of 5.69 billion dirhams ($1.55 billion), up from 4.83 billion dirhams a year ago.

In addition, according to Valecha, Trump is more likely to resolve regional conflict faster as compared to his counterpart, which is expected to promote further stability in the region.

Outside the Gulf, Egypt’s blue-chip index added 0.7%.

** The Qatari bourse was closed for a public holiday.

SAUDI ARABIA added 0.3% to 12,131

ABU DHABI rose 0.4% to 9,466

DUBAI gained 0.6% to 4,644

EGYPT up 0.7% to 31,267

BAHRAIN added 0.5% to 2,031

OMAN eased 0.2% to 4,706

KUWAIT dropped 0.2% to 7,703

($1 = 3.6729 UAE dirham)

($1 = 3.7564 riyals)