LONDON: Gulf equities ended higher on Monday as the US and China agreed to temporarily slash harsh reciprocal tariffs while US President Donald Trump’s planned visit to Saudi Arabia and Gulf states on Tuesday also raised investor sentiment.
The US will cut extra tariffs it imposed on Chinese imports in April to 30 percent from 145 percent and Chinese duties on US imports will fall to 10 percent from 125 percent, the two countries said on Monday following talks in Geneva. The new measures are effective for 90 days.
Saudi Arabia’s benchmark stock index rose 1.3 percent, the sharpest rise in a month with almost all sectors in the green.
Saudi Aramco gained 2.2 percent after the world’s top oil exporter reported a net profit of SR97.54 billion ($26.01 billion) in the first quarter on Sunday, beating a company-provided median estimate from 16 analysts of $25.36 billion.
Among other gainers, National Industrialization Co. rose 1.1 percent after the petrochemical company posted a quarterly net profit compared to a net loss a year earlier.
Meanwhile, Saudi Arabia and the US are set to discuss a number of blockbuster economic deals during Trump’s visit on Tuesday, with the US poised to offer Saudi Arabia an arms package worth well over $100 billion, sources have told Reuters.
The Qatari benchmark index continued its three-session winning streak and rose 0.7 percent, with most stocks posting gains.
Qatar National Bank, the region’s largest lender, gained 2 percent and Qatar Electricity and Water climbed 4 percent, its biggest rise in more than a year.
Qatar’s main electricity and desalinated water supplier, QEWC said on Monday that Qatar General Electricity and Water Corporation ‘Kahramaa’ has signed a strategic agreement with QEWC, QatarEnergy, and Sumitomo Corporation to build the Ras Abu Fontas Independent Water and Power Facility at a cost of 13.5 billion Qatari riyals ($3.71 billion).
Dubai’s benchmark stock index was up 0.4 percent, helped by a 7.3 percent rise in Parkin and a 2.8 percent gain in Talabat Holding.
The online food ordering company Talabat reported a first-quarter net profit of $103.3 million. The Abu Dhabi benchmark index edged up 0.1 percent with Aldar Properties gaining 1 percent and Fertiglobe rising 2.2 percent.
The fertilizer producer has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia Pty Ltd.
Outside the Gulf, Egypt’s blue-chip index advanced 0.5 percent after three consecutive sessions of losses. Commercial International Bank rose 1.1 percent and Abu Dhabi Islamic Bank Egypt climbed 3.6 percent.
The lender reported a 43 percent rise in first quarter net profit.
