Crude falls amid US tariff concerns

Gulf stock markets ended mixed yesterday as sentiment was hurt by a more than $2 per barrel drop in Brent crude after US President Donald Trump threatened new tariffs on China.

Qatar shares, down 0.4 per cent, and Oman’s index , 1 per cent lower, led the declines. But Abu Dhabi rose 0.5 per cent, and Kuwait’s premier index added 1.4 per cent, extending gains from a day earlier.

Elsewhere, the concern of US tariffs on a further $200 billion of Chinese goods weighed on commodities and Asian stock markets.

In Saudi Arabia, financial sector firms dragged the benchmark down 0.4 per cent. Samba Financial Group dropped 2 per cent and Banque Saudi Fransi, fell 1.9 per cent. Chemical shares were hit as well including Yanbu National Petrochemical which lost 2.3 per cent.

Goldman Sachs said in a report this week it is raising its 12-month price target to 18.5 riyals from 16.9 riyals, on the back of higher estimates to reflect higher product pricing and lower feedstock costs.

Saudi Basic Industries was up 0.8 per cent. Jarir Marketing closed up 1 per cent after reporting an estimated 10 per cent increase in second quarter profit.

Asset manager NCB Capital said it was overweight on the stock and that it had a target price of 209.6 riyals per share after Jarir released its latest quarterly results.

NCB Capital also said it believed Jarir’s store expansions would continue to negate the impact of new regulations, such as VAT and the expat levy.

In Qatar, Commercial Bank of Qatar fell 2.4 per cent and Qatar Islamic Bank shed 1.5 per cent. Petrochemicals, metals and fertiliser producer Industries Qatar lost 1.1 per cent. Abu Dhabi shares were supported by First Abu Dhabi Bank, up 1.2 per cent, and Etisalat, up 0.6 per cent.

Abu Dhabi National Energy, or Taqa as it is known, added 4.1 per cent despite lower oil prices but Dana Gas lost 1 per cent.

In Dubai, the index was dragged down 0.1 per cent by property share with Emaar Properties falling 2.2 per cent and Damac Properties losing 1 per cent.

The Dubai real estate sector has been a drag on the exchange this year with analysts expecting weak property values to fall further on excess supply.