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Arab News
06-04-2025
- Business
- Arab News
Markets in freefall: Gulf bourses hit hard by US tariffs
RIYADH: Gulf bourses experienced a downturn on Sunday as fresh US tariffs dampened investor confidence across the region, leading to widespread sell-offs in line with last week's global market slump. Saudi Arabia's benchmark Tadawul All Share Index dropped by 5.06 percent at the open, marking its sharpest single-day decline in months. Qatar's QE Index saw a decline of 4.13 percent, while Kuwait's Premier Market Index slipped by 0.36 percent. Other regional markets also felt the pressure. Muscat's MSX 30 Index dipped by 0.17 percent, and the Bahrain All Share Index fell by 0.56 percent as investors weighed the impact of escalating trade tensions and a decline in oil prices. This followed the announcement by US President Donald Trump of a 10 percent reciprocal tariff on Gulf imports. Although UAE markets were closed on Sunday, the Abu Dhabi Securities Exchange ended the previous week with a 1.9 percent loss on Friday. Similarly, Dubai's DFM General Index closed 1.5 percent lower on April 4, indicating that further declines could occur when trading resumes on Monday. In Egypt, trading was temporarily halted in several stocks on Sunday for 10 minutes after having dropped by 5 and 10 percent, in line with market regulations designed to prevent excessive volatility. Tariff turmoil rattles markets The White House confirmed on April 2 that a 10 percent tariff on Gulf Cooperation Council imports, effective April 5, was imposed to address what President Trump described as 'long-standing unfair trade practices.' Although the Gulf states were spared from more severe penalties—41 percent for Syria and 39 percent for Iraq—the move has raised concerns about rising import costs for US-sourced goods, particularly in sectors like construction and electronics. 'These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,' the White House said in a statement on April 2. Banking sector hit hardest Gulf banking stocks were hit hardest amid growing fears of a potential US economic slowdown. The sell-off mirrored the steep losses seen on Wall Street on April 4, where the S&P 500 plummeted 9.58 percent, wiping out $5 trillion in market value and marking one of its worst declines in 70 years, according to Reuters. The Nasdaq Composite Index also dropped by 5.8 percent on Friday, losing 962.8 points and officially entering bear market territory, driven by mounting global economic concerns. Oil prices add to the pressure Although the White House confirmed that oil and gas imports would be exempt from the new tariffs, Saudi oil giant Aramco still experienced a dip in market value during Sunday's trading session. Its shares fell more than 4 percent, largely due to the sharp drop in oil prices. For the GCC, the White House's exemption is significant, as oil and gas constitute over 60 percent of Saudi Arabia's exports to the US and remain a vital part of Gulf-US trade relations. Oil prices plunged 7 percent on Friday, hitting a three-year low, after China retaliated in the escalating trade war by imposing 34 percent tariffs on all American goods, effective April 10. This move, coinciding with global preparations for countermeasures against Trump's tariffs—the highest in over a century—sent shockwaves through markets, with investors increasingly factoring in recession risks. JP Morgan raised its forecast for a US and global recession to 60 percent, up from 40 percent, warning that escalating tariff tensions are undermining business confidence and threatening to derail global growth. S&P Global also adjusted its 'subjective' odds of a US recession, raising them to 30-35 percent, up from 25 percent in March. Goldman Sachs had already revised its US recession risk to 35 percent from 20 percent ahead of the April 2 tariff announcement, citing weakening economic fundamentals. HSBC noted on Thursday that the recession narrative is likely to strengthen, although markets have already factored in some of the risks.
Zawya
04-03-2025
- Business
- Zawya
Oman: MSX continues bearish trend as main index declines by 2.4% in February
Muscat – The benchmark index of the Muscat Stock Exchange (MSX) has continued its downward trajectory in 2025, declining by 2.4% in February to close the month at 4,435.9 points. This followed a 0.7% drop in January, reflecting a continued bearish trend. Throughout February, the MSX30 Index traded within a narrow, declining range, primarily due to a lack of significant market catalysts, according to a research report released by Kamco Investment. Sectoral performance on the MSX was mixed, with two out of the three sector indices on the exchange recording losses during the month, while the third reported a gain. The Financial Index fell by 1.1%, closing the month at 7,739.7 points. This decline was largely driven by losses in shares of major companies within the sector, including National Bank of Oman (-4.8%) and Sohar International Bank (-3.6%). The Services Index also declined during the month, falling by 3.5% to close at 1,632.9 points. In contrast, the Industrial Index posted a notable monthly gain of 7.8%, closing in February 2025 at 5,832.22 points. In terms of company performance, Al Jazeera Steel Products topped the gainers list with a share price gain of 25.4%, followed by Oman Cement and Construction Materials Industries, which recorded monthly share price gains of 24.0% and 20.6%, respectively. On the decliners' side, Oman Cables Industry led the chart with a share price fall of 11.6%, followed by Ooredoo Oman and Muscat Gases, which saw share price drops of 10.3% and 10.0%, respectively. Trading activity rises Trading activity on the MSX saw strong gains in February. The total volume of shares traded on the exchange increased by 166.4%, rising to 1.1bn shares in February compared to 424.8mn shares in January. Similarly, the total value traded on the exchange increased by 204.5%, reaching RO217mn against RO71.3mn in January. OQ Exploration & Production topped the monthly value traded chart with trades amounting to RO13.8mn, followed by OQ Base Industries and Bank Muscat, with total values traded of RO5.2mn and RO4.2mn, respectively. In terms of monthly volume traded, Ahlibank topped the list with 828mn shares, followed by OQ Base Industries and OQ Exploration & Production with volumes of 51.3mn shares and 43.6mn shares, respectively. GCC markets According to Kamco Investment's report, after witnessing healthy gains at the start of the month, the GCC MSCI Index closed February with a marginal decline, led by a fall in large-cap stocks. The decline occurred despite positive performance recorded by three out of the seven exchanges in the region. 'The decline reflected a fall in key global markets, including the US, driven by factors such as an economic slowdown, the geopolitical standoff between Russia and Ukraine, elevated valuations, and the uncertainty surrounding trade wars. Crude oil also had an uneventful month, declining by 4.7% due to increasing supply,' the report said. The GCC monthly performance chart showed a marginal decline of 0.4% for the MSCI GCC Index. At the exchange level, Bahrain was the best-performing market during the month with a gain of 4.3%, closely followed by Kuwait with a gain of 4.1%. Dubai also registered growth of 2.6%. On the other hand, Saudi Arabia was the biggest declining market in the region, falling by 2.4%, in line with the decline in Oman. Qatar and Abu Dhabi followed with declines of 2.1% and 0.2%, respectively. In terms of year-to-date performance, the GCC remained in the green with a gain of 2.6%, reflecting gains at the start of the year. Kuwait was the best-performing market. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Yahoo
29-01-2025
- Business
- Yahoo
After $2.5 Billion Haul, Oman's IPO Pipeline Faces Crucial Test
(Bloomberg) -- A record $2.5 billion haul from new share sales helped Oman leapfrog markets like the UK last year, but the sultanate faces an early test of investors' appetite in 2025. Trump's Federal Funding Pause Threatens State Financials NYC Subway's Most Dangerous Stations Are on Lexington Ave. Line Texas HOA Charged With Discrimination for Banning Section 8 Renters Housing Aid Uncertain After Trump's Spending Freeze Memo Newsom Enlists Magic Johnson, Guggenheim CEO for LA Rebuilding The Oman Investment Authority-backed Asyad Group's plan to sell at least a 20% stake in its shipping unit comes against the backdrop of muted debuts for two initial public offerings, including Muscat's largest ever deal. Asyad Shipping Co.'s IPO will also serve as an indication of the government's ability to execute its divestment program, for which it has earmarked around 30 assets. 'Asyad's success will be a much needed catalyst for many more IPOs in the sultanate,' said Nishit Lakhotia, head of research at SICO Bank. Recent Omani offerings disappointed investors looking to make quick gains from flipping shares post listing, he added. OQ Exploration & Production SAOG's shares have fallen 17% since their October listing, while OQ Base Industries SAOG's stock is largely flat since its debut last month. Firms that went public in 2023 have also struggled — OQ Gas Networks SAOC is down 6% and Abraj Energy Services SAOG is trading nearly 4% lower. The weak outlook for energy prices may have dented appetite for recent Omani IPOs, which were linked to the oil and chemicals sectors, according to Hasnain Malik, emerging and frontier markets strategist at Tellimer. Since October, Oman's benchmark MSX 30 Index has dropped 3%, while the MSCI GCC Countries Combined Index has gained nearly 4% and Brent crude futures have risen 7.5%. Asyad Shipping provides marine transportation services for key exports, making the business 'relatively safe and sticky,' according to Lakhotia. A generous dividend policy may also help lure investors, he said. Get the Mideast Money newsletter, a weekly look at the intersection of wealth and power in the region. Learning Curve Oman is a few years behind regional peers Saudi Arabia and the United Arab Emirates in its divestment program and its push to develop its capital markets. The Muscat Stock Exchange is among the smallest bourses in the region, with a market capitalization of just over $31 billion, according to data compiled by Bloomberg. In August, the country's capital markets regulator approved measures to boost private-sector listings and secondary liquidity. 'The reforms are all in place to act as a catalyst,' Lakhotia said. The sultanate is also chasing an upgrade to emerging-market status. Currently, Oman and Bahrain are the only countries in the six-nation Gulf Cooperation Council not classified as emerging markets by MSCI Inc. Oman has 'some way to go' to meet the market capitalization requirements necessary for the upgrade, said James Swanston, an economist at Capital Economics Ltd. But an improving economic backdrop is starting to boost the country's allure, he said. Stretched valuations — blamed for a string of disappointing listings in the Middle East — could be a factor in Oman as well. Asyad Shipping is considering seeking a valuation of at least $1 billion in its IPO, Bloomberg News has reported. Strong debuts from Nice One Beauty Digital Marketing Co. and Almoosa Health Co. in Saudi Arabia show there is plenty of appetite for private sector plays on the domestic economy in the Gulf, Tellimer's Malik said. 'This should not prevent Oman from executing more privatizations, just maybe not at as high valuations as it previously hoped for.' What America's Tech Billionaires Really Bought When They Backed Donald Trump Musk Pitches New Narrative as Tesla Sales Fall Forget Factories, Small US Towns Want Buc-ee's Gas Stations The CDC Won't Give the Public a Full Picture of Fertility Treatment Risks Elon Musk's Inaugural Highs (and Lows) ©2025 Bloomberg L.P. Sign in to access your portfolio
