By Ateeq Shariff
(Reuters) - Most stock markets in the Gulf ended lower on Wednesday after the latest round of U.S. tariffs and countermeasures from Canada and China fuelled global trade war concerns.
U.S. President Donald Trump’s 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with new duties on Chinese goods, sparking fears of a trade wars.
In response, China and Canada imposed their own tariffs on various U.S. products, while Mexico announced that it would reveal its countermeasures on Sunday.
Saudi Arabia’s benchmark index eased 0.3%, hit by a 1.3% fall in oil giant Saudi Aramco (TADAWUL:2222), extending losses from the previous session when the firm reported a drop in annual profit and signalled it will slash its dividend payouts by nearly a third this year to $85.4 billion.
The significantly reduced dividends could also result in fewer funds for the kingdom - which directly owns 81.5% of Aramco - and is in a race to complete several large-scale projects and potentially faces a wider budget deficit.
Elsewhere, Dallah Healthcare Company slid , despite reporting a rise in annual profit.
Dubai’s main share index finished 0.8% lower, weighed down by a 3.7% slide in top lender Emirates NBD, as the bank traded ex-dividend.
Among other losers, blue-chip developer Emaar Properties lost 1.1% and toll operator Salik was down 0.6%.
In Abu Dhabi, the index closed 0.4% lower, with petrochemical firm Borouge tumbling 6%, a day after he announcement of its merger with Borealis to form the world’s fourth largest polyolefins firm by production capacity.
The Qatari index, however, gained 0.2%, helped by a 2.1% rise in Qatar Gas Transport.
Outside the Gulf, Egypt’s blue-chip index added 0.4%, with Commercial International Bank rising 1.6%.
SAUDI ARABIA down 0.3% to 11,899
Abu Dhabi fell 0.4% to 9,557
Dubai lost 0.8% to 5,313
QATAR added 0.2% to 10,492
EGYPT up 0.4% to 30,876
BAHRAIN was down 0.2% to 1,976
OMAN was flat at 4,411
KUWAIT dropped 0.5% to 8,719