Mideast Stocks: UAE markets decline over profit booking and tariff tensions
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, while Japan's Nikkei closed 0.7% lower. Late on Thursday, President Donald Trump signed an executive order imposing tariffs of 10% to 41% on U.S. imports from foreign countries, including 25% on goods from India, 20% from Taiwan, 19% from Thailand and 15% from South Korea.
The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the Saudi riyal, are pegged to the U.S. dollar.
Dubai's main index dropped 0.8%, retreating for a second straight session, as investors booked profits after the index surpassed a 17-1/2-year high, with top lender Emirates NBD Bank falling 2.4% and toll operator Salik Company decreasing 1.1%. However, maritime and shipping company Gulf Navigation Holding surged 5.8% after it raised the foreign ownership limit to 100% from 49%.
Abu Dhabi's benchmark index settled 0.5% lower, snapping a five-session winning streak after reaching its highest level in over two and a half years earlier in the week.
The downturn was led by a 3.4% decline in Abu Dhabi Commercial Bank, the UAE's third-largest lender. Commercial Bank International also slumped 7.8% after reporting a 5% decrease in second-quarter profit to 42.6 million dirhams ($11.60 million).
Nevertheless, losses in the index were partially capped by a 5.1% jump in IHC-owned investment firm Multiply Group as investors continued to buy dips after sluggish earnings last week.
National Bank of Fujairah also climbed 9.6%, its biggest single-day gain since early February, following a 67% growth in its Q2 profit. Oil prices - a key catalyst for the Gulf's financial market - slipped 0.9% to $71.03 a barrel by 1136 GMT.
Dubai and Abu Dhabi indices ended their five-week winning streaks with weekly declines of 0.6% and 0.2% respectively, but still posted strong monthly gains with Dubai clinching 8%, its highest in over four years, and Abu Dhabi climbed 4.2%, its highest in more than two years, according to LSEG data.
ABU DHABI down 0.5% to 10,317
DUBAI fell 0.8% to 6,112
($1 = 3.6729 UAE dirham)
(Reporting by Mohd Edrees in Bengaluru; Editing by Vijay Kishore)
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