Wednesday 6 November 2024

Most Gulf markets gain on Trump's presidential win | Reuters

Most Gulf markets gain on Trump's presidential win | Reuters


Most stock markets in the Gulf ended higher on Wednesday as a win by Republican Donald Trump in the U.S. presidential election fuelled expectations of more business-friendly policies, analysts said.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, Dubai's main share index (.DFMGI), opens new tab added 0.5% and in Abu Dhabi, the index (.FTFADGI), opens new tab added 0.4%.

"Analysts noted that these market moves align with investor expectations of a Trump administration’s economic approach, prioritising reduced regulatory pressures and trade policy changes," Mohamed Hashad, chief market strategist, at Noor Capital said.

Saudi's Al Rajhi Bank (1120.SE), opens new tab rose 2.3% and Saudi Arabian Mining Company (1211.SE), opens new tab closed 4.1% higher, while Saudi Electricity Co (5110.SE), opens new tab jumped 6.3%, following a steep rise in quarterly net profit.

The biggest mover in Dubai was toll operator Salik Company (SALIK.DU), opens new tab, which gained 2.5%, while sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gained 1.2%, a day after reporting a rise in third-quarter profit.

In Abu Dhabi, conglomerate International Holding (IHC.AD), opens new tab rose 0.8% ahead of its earnings announcement.

However, crude prices - a catalyst for the Gulf's financial markets - fell as the U.S. dollar rallied on Trump's win.

Investors believe a Trump presidency will bolster the dollar as interest rates may need to remain high to combat inflation resulting from any new tariffs.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.8%, with Fawry For Banking Technology Electronic Payments (FWRY.CA), opens new tab rising 3.2%.

Egypt's net foreign reserves rose to $46.942 billion in October from $46.737 billion in September, the central bank said on Wednesday.

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