Most stock markets in the Gulf ended higher on Tuesday amid strong fundamentals and rising oil prices, while the Dubai index extended losses on plans for a federal corporate tax and geopolitical tensions.
Saudi Arabia's benchmark index (.TASI) added 0.2%, helped by a 1.5% gain in the kingdom's largest lender Saudi National Bank (1180.SE).
Stock markets in the Gulf were mostly rising thanks to the strong energy markets and solid local fundamentals. The region is benefiting from a post COVID recovery and decreasing concerns about the spread of the Omicron variant, said Eman AlAyyaf, CEO of EA Trading.
The Qatari benchmark (.QSI) gained 0.6%, with Qatar Gas Transport (QGTS.QA) jumping 3.9%.
In Abu Dhabi, the index (.ADI) reversed early losses to end 0.2% higher, with conglomerate International Holding gaining 0.7%.
Dubai's main share index (.DFMGI) finished 1% lower, extending losses from the previous session, weighed down by a 1.7% fall in blue-chip developer Emaar Properties (EMAR.DU).
The United Arab Emirates (UAE) said on Monday it would introduce a federal corporate tax on business profits for the first time starting from June 1, 2023, although it kept the rate low, at 9%, to maintain its attractiveness for businesses. read more
Corporate taxes on profit are expected to reduce net earnings for companies outside free zone properties, creating a bearish sentiment in the market, according to Vijay Valecha, chief investment officer of Century Financial.
"Additionally, increasing geopolitical tensions between the UAE and Yemen are weighing heavily on the local bourses."
On Monday, the UAE intercepted a ballistic missile fired by Yemen's Iran-aligned Houthi movement, the third such attack on the U.S.-allied Gulf state in the last two weeks. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1% higher, led by a 1.1% increase in top lender Commercial International Bank (COMI.CA).
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